§ 6.1-392.1. (Repealed effective October 1, 2010) Acquisition of interests incredit card bank located in-state by general business corporation; conditions.
A. A general business corporation may acquire and hold all or substantiallyall of the voting shares of a single credit card bank located in thisCommonwealth when and for so long as the following conditions are satisfied:
1. The credit card bank whose stock is to be acquired shall comply with theprovisions of subdivisions 1 and 2 of § 6.1-392, except that such credit cardbank shall be created for the sole purpose of engaging in a multi-statecredit card operation;
2. The credit card bank whose stock is to be acquired employs on the date ofcommencement of its banking business in this Commonwealth or will employwithin one year of such date not less than forty persons in this Commonwealthin its business; provided, that there shall be counted in the number ofpersons to be so employed, new employees in this Commonwealth of the generalbusiness corporation. For the purposes of this subsection, "new employees"shall be defined as including only those employees of the general businesscorporation who were first employed within Virginia no more than nine monthsbefore the Commission approved the acquisition pursuant to subdivision 7 ofthis subsection;
3. The credit card bank whose stock is to be acquired shall not accept demanddeposits or deposits that the depositor may withdraw by check or similarmeans for payment to third parties or others;
4. The credit card bank whose stock is to be acquired shall not accept anysavings or time deposits of less than $100,000 but may accept such depositsof $100,000 or more only from affiliates of the credit card bank having theirprincipal places of business outside of this Commonwealth; however, theCommission shall not issue a Certificate of Authority authorizing thecommencement of business of any credit card bank created in accordance withthe provisions of this section unless it has determined that such depositsare to be insured or guaranteed by a federal agency up to the limits of theinsurance provided thereby;
5. The credit card bank whose stock is to be acquired shall not engage in thebusiness of making commercial loans;
6. The credit card bank whose stock is to be acquired is operated in a mannerand at a location that is not likely to attract customers from the generalpublic in this Commonwealth to the substantial detriment of existing bankinginstitutions located in this Commonwealth; however, such credit card bank maybe operated in a manner likely to attract and retain the credit cardtransaction business of customers with whom that credit card bank, or thegeneral business corporation acquiring that credit card bank, has or has hadbusiness relations; and
7. Such general business corporation has received the prior approval of theCommission for the acquisition.
B. Any general business corporation proposing an acquisition pursuant to thissection shall file an application with the Commission for approval to makesuch acquisition. The application shall be in such form as the Commission mayprescribe from time to time. Such application shall specifically acknowledgethe applicant's agreement to be bound by the conditions set forth in thissection. In addition, such application shall designate a resident of thisCommonwealth as the applicant's registered agent in connection with mattersarising out of this chapter and shall be accompanied by a filing fee of$10,000.
C. An institution created in accordance with this chapter shall be a bankwithin the meaning of § 6.1-4 but shall at all times remain subject to therestrictions and limitations on its authority as set forth in this chapter. Acredit card bank acquired in accordance with this chapter may impose chargesas permitted by § 6.1-330.78, but for purposes of § 6.1-39.3 and Chapter 15(§ 6.1-398 et seq.) of this title shall not be considered a bank. A creditcard bank shall be subject to the provisions of Chapter 2 (§ 6.1-3 et seq.)of this title except where any rights, powers, privileges or provisions ofChapter 2 are inconsistent with the rights, powers, privileges, provisions orlimitations of this chapter, in which case this chapter shall govern.
D. Upon determination that any general business corporation is holding stockin a credit card bank located in the Commonwealth in violation of theconditions set forth in this section or its agreement pursuant to § 6.1-393,the Commissioner shall have authority to take remedial action, including anorder to divest such stock, in the same manner and under the same terms andconditions as are applicable to out-of-state bank holding companies orsubsidiaries thereof pursuant to § 6.1-396.
E. A credit card bank acquired by a general business corporation pursuant tothis section shall annually, not later than January 31 of each year, filewith the Commissioner a certificate of compliance which shall be executed bythe appropriate officers of the credit card bank and attested to under oathby at least three of the directors of the credit card bank. A certificate ofcompliance shall specifically certify that the credit card bank is incompliance with all the requirements, restrictions and limitations set forthin this section and such other matters as may be required by the Commissioner.
(1989, c. 751; 1989, Sp. Sess., cc. 4, 7; 1992, c. 283.)
§ 6.1-392.1. (Repealed effective October 1, 2010) Acquisition of interests incredit card bank located in-state by general business corporation; conditions.
A. A general business corporation may acquire and hold all or substantiallyall of the voting shares of a single credit card bank located in thisCommonwealth when and for so long as the following conditions are satisfied:
1. The credit card bank whose stock is to be acquired shall comply with theprovisions of subdivisions 1 and 2 of § 6.1-392, except that such credit cardbank shall be created for the sole purpose of engaging in a multi-statecredit card operation;
2. The credit card bank whose stock is to be acquired employs on the date ofcommencement of its banking business in this Commonwealth or will employwithin one year of such date not less than forty persons in this Commonwealthin its business; provided, that there shall be counted in the number ofpersons to be so employed, new employees in this Commonwealth of the generalbusiness corporation. For the purposes of this subsection, "new employees"shall be defined as including only those employees of the general businesscorporation who were first employed within Virginia no more than nine monthsbefore the Commission approved the acquisition pursuant to subdivision 7 ofthis subsection;
3. The credit card bank whose stock is to be acquired shall not accept demanddeposits or deposits that the depositor may withdraw by check or similarmeans for payment to third parties or others;
4. The credit card bank whose stock is to be acquired shall not accept anysavings or time deposits of less than $100,000 but may accept such depositsof $100,000 or more only from affiliates of the credit card bank having theirprincipal places of business outside of this Commonwealth; however, theCommission shall not issue a Certificate of Authority authorizing thecommencement of business of any credit card bank created in accordance withthe provisions of this section unless it has determined that such depositsare to be insured or guaranteed by a federal agency up to the limits of theinsurance provided thereby;
5. The credit card bank whose stock is to be acquired shall not engage in thebusiness of making commercial loans;
6. The credit card bank whose stock is to be acquired is operated in a mannerand at a location that is not likely to attract customers from the generalpublic in this Commonwealth to the substantial detriment of existing bankinginstitutions located in this Commonwealth; however, such credit card bank maybe operated in a manner likely to attract and retain the credit cardtransaction business of customers with whom that credit card bank, or thegeneral business corporation acquiring that credit card bank, has or has hadbusiness relations; and
7. Such general business corporation has received the prior approval of theCommission for the acquisition.
B. Any general business corporation proposing an acquisition pursuant to thissection shall file an application with the Commission for approval to makesuch acquisition. The application shall be in such form as the Commission mayprescribe from time to time. Such application shall specifically acknowledgethe applicant's agreement to be bound by the conditions set forth in thissection. In addition, such application shall designate a resident of thisCommonwealth as the applicant's registered agent in connection with mattersarising out of this chapter and shall be accompanied by a filing fee of$10,000.
C. An institution created in accordance with this chapter shall be a bankwithin the meaning of § 6.1-4 but shall at all times remain subject to therestrictions and limitations on its authority as set forth in this chapter. Acredit card bank acquired in accordance with this chapter may impose chargesas permitted by § 6.1-330.78, but for purposes of § 6.1-39.3 and Chapter 15(§ 6.1-398 et seq.) of this title shall not be considered a bank. A creditcard bank shall be subject to the provisions of Chapter 2 (§ 6.1-3 et seq.)of this title except where any rights, powers, privileges or provisions ofChapter 2 are inconsistent with the rights, powers, privileges, provisions orlimitations of this chapter, in which case this chapter shall govern.
D. Upon determination that any general business corporation is holding stockin a credit card bank located in the Commonwealth in violation of theconditions set forth in this section or its agreement pursuant to § 6.1-393,the Commissioner shall have authority to take remedial action, including anorder to divest such stock, in the same manner and under the same terms andconditions as are applicable to out-of-state bank holding companies orsubsidiaries thereof pursuant to § 6.1-396.
E. A credit card bank acquired by a general business corporation pursuant tothis section shall annually, not later than January 31 of each year, filewith the Commissioner a certificate of compliance which shall be executed bythe appropriate officers of the credit card bank and attested to under oathby at least three of the directors of the credit card bank. A certificate ofcompliance shall specifically certify that the credit card bank is incompliance with all the requirements, restrictions and limitations set forthin this section and such other matters as may be required by the Commissioner.
(1989, c. 751; 1989, Sp. Sess., cc. 4, 7; 1992, c. 283.)
§ 6.1-392.1. (Repealed effective October 1, 2010) Acquisition of interests incredit card bank located in-state by general business corporation; conditions.
A. A general business corporation may acquire and hold all or substantiallyall of the voting shares of a single credit card bank located in thisCommonwealth when and for so long as the following conditions are satisfied:
1. The credit card bank whose stock is to be acquired shall comply with theprovisions of subdivisions 1 and 2 of § 6.1-392, except that such credit cardbank shall be created for the sole purpose of engaging in a multi-statecredit card operation;
2. The credit card bank whose stock is to be acquired employs on the date ofcommencement of its banking business in this Commonwealth or will employwithin one year of such date not less than forty persons in this Commonwealthin its business; provided, that there shall be counted in the number ofpersons to be so employed, new employees in this Commonwealth of the generalbusiness corporation. For the purposes of this subsection, "new employees"shall be defined as including only those employees of the general businesscorporation who were first employed within Virginia no more than nine monthsbefore the Commission approved the acquisition pursuant to subdivision 7 ofthis subsection;
3. The credit card bank whose stock is to be acquired shall not accept demanddeposits or deposits that the depositor may withdraw by check or similarmeans for payment to third parties or others;
4. The credit card bank whose stock is to be acquired shall not accept anysavings or time deposits of less than $100,000 but may accept such depositsof $100,000 or more only from affiliates of the credit card bank having theirprincipal places of business outside of this Commonwealth; however, theCommission shall not issue a Certificate of Authority authorizing thecommencement of business of any credit card bank created in accordance withthe provisions of this section unless it has determined that such depositsare to be insured or guaranteed by a federal agency up to the limits of theinsurance provided thereby;
5. The credit card bank whose stock is to be acquired shall not engage in thebusiness of making commercial loans;
6. The credit card bank whose stock is to be acquired is operated in a mannerand at a location that is not likely to attract customers from the generalpublic in this Commonwealth to the substantial detriment of existing bankinginstitutions located in this Commonwealth; however, such credit card bank maybe operated in a manner likely to attract and retain the credit cardtransaction business of customers with whom that credit card bank, or thegeneral business corporation acquiring that credit card bank, has or has hadbusiness relations; and
7. Such general business corporation has received the prior approval of theCommission for the acquisition.
B. Any general business corporation proposing an acquisition pursuant to thissection shall file an application with the Commission for approval to makesuch acquisition. The application shall be in such form as the Commission mayprescribe from time to time. Such application shall specifically acknowledgethe applicant's agreement to be bound by the conditions set forth in thissection. In addition, such application shall designate a resident of thisCommonwealth as the applicant's registered agent in connection with mattersarising out of this chapter and shall be accompanied by a filing fee of$10,000.
C. An institution created in accordance with this chapter shall be a bankwithin the meaning of § 6.1-4 but shall at all times remain subject to therestrictions and limitations on its authority as set forth in this chapter. Acredit card bank acquired in accordance with this chapter may impose chargesas permitted by § 6.1-330.78, but for purposes of § 6.1-39.3 and Chapter 15(§ 6.1-398 et seq.) of this title shall not be considered a bank. A creditcard bank shall be subject to the provisions of Chapter 2 (§ 6.1-3 et seq.)of this title except where any rights, powers, privileges or provisions ofChapter 2 are inconsistent with the rights, powers, privileges, provisions orlimitations of this chapter, in which case this chapter shall govern.
D. Upon determination that any general business corporation is holding stockin a credit card bank located in the Commonwealth in violation of theconditions set forth in this section or its agreement pursuant to § 6.1-393,the Commissioner shall have authority to take remedial action, including anorder to divest such stock, in the same manner and under the same terms andconditions as are applicable to out-of-state bank holding companies orsubsidiaries thereof pursuant to § 6.1-396.
E. A credit card bank acquired by a general business corporation pursuant tothis section shall annually, not later than January 31 of each year, filewith the Commissioner a certificate of compliance which shall be executed bythe appropriate officers of the credit card bank and attested to under oathby at least three of the directors of the credit card bank. A certificate ofcompliance shall specifically certify that the credit card bank is incompliance with all the requirements, restrictions and limitations set forthin this section and such other matters as may be required by the Commissioner.
(1989, c. 751; 1989, Sp. Sess., cc. 4, 7; 1992, c. 283.)
