§ 6.1-59. For what purpose banks may purchase, hold and convey real estate
A. In addition to the authority provided in § 6.1-59.1, every bank incorporated under the laws of this Commonwealth may purchase, hold and convey real estate for the following purposes and for no other:
1. Such as shall be desirable and prudent for its present or future accommodation in the transaction of its business;
2. Such as shall be mortgaged or otherwise encumbered to it in good faith by way of security for debts contracted;
3. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings;
4. Such as it shall purchase at sales under judgments, decrees, mortgages, or deeds of trust held by it, in whole or in part, or shall purchase to secure debts due to it. No such bank shall hold the possession of any real estate under mortgage or other encumbrance or the title and possession of any real estate conveyed to it in satisfaction of debt or purchased by it for the protection of obligations secured thereby, for a longer period than ten years except with the written consent and approval of the State Corporation Commission; however, if, within such ten-year period, a bank shall have reduced upon its books the asset value of such mortgage, deed of trust or real estate to the nominal sum of one dollar, it may thereafter continue to hold and own the same indefinitely without such consent and approval of the Commission.
B. Nothing in this section shall affect the validity of the title to any such real estate conveyed or transferred by a bank.
(Code 1950, § 6-50; 1966, c. 584; 1988, c. 296.)
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