§ 6.1-194.136. (Repealed effective October 1, 2010) General investmentauthority.
The assets of a state savings bank may be invested only in the following ways:
1. In real and personal property necessary for the conduct of its businessand in real estate to be held for its future accommodation. Such savings bankmay invest in an office building or buildings and appurtenances for thetransaction of such savings bank's business, or for the transaction of suchbusiness and for rental. No such investment may be made without the priorapproval of the Commissioner if the total amount of the investment exceedsthe aggregate amount of the savings bank's unimpaired capital funds.
2. In stock and other securities or obligations of a service corporation orcorporations. Such service corporation or corporations may charge and collectsuch finance charges, fees and interest rates as are authorized to statesavings banks, and shall be subject to state and local taxation in the samemanner as are state savings banks. Unless specifically authorized by theCommissioner, a state savings bank shall not invest more than 10 percent, inthe aggregate, of its assets in a service corporation or corporations. Suchservice corporation or corporations, directly or indirectly, may engage inproviding real estate brokerage services for property owned by a savings bankowning capital stock in the service corporation, by the service corporation,or by a joint venture in which the service corporation is a participant, butno such service corporation or corporations, state savings bank or holdingcompany which has control, as control is defined in § 6.1-381, over a statesavings bank may engage directly or indirectly in providing real estatebrokerage services for property owned by third parties. Nothing in thissubdivision shall prohibit a state savings bank or its affiliates or aholding company that has control over a state savings bank from engaging inthird party real estate brokerage in any state, territory or district, otherthan the Commonwealth, that permits such activities by its state charteredsavings institutions, or their affiliates or holding companies.
3. In obligations which are fully guaranteed as to principal and interest bythe United States or the Commonwealth; in stock or obligations of any FederalHome Loan Bank or Banks; in stock or obligations of the Federal DepositInsurance Corporation; in stock or obligations of Federal Reserve Banks; inobligations of, or issued by, any other state, territory or possession of theUnited States or political subdivision thereof, so long as such obligationscontinue to hold one of the four highest national investment grade ratings;in obligations of, or issued by, any city, town, county, district or othermunicipal corporation or political subdivision of the Commonwealth, or anypublic instrumentality or public authority created by act of the GeneralAssembly, so long as such obligations continue to hold one of the fourhighest national investment grade ratings; in stock, obligations or otherinstruments of the Federal National Mortgage Association, Government NationalMortgage Association, Federal Home Loan Mortgage Corporation, or anysuccessor or successors thereto; in obligations of, or guaranteed as toprincipal and interest by, the Dominion of Canada or any province thereof,provided that the principal and interest of any such obligations are payablein United States funds; in demand, time, or savings deposits, shares oraccounts, or other obligations of any financial institution the accounts ofwhich are insured by a federal agency; or in bankers' acceptances andcommercial paper which are eligible for purchase by Federal Reserve Banks.
4. In loans to individuals for personal, family or household purposes andloans reasonably incident thereto, to include loans to dealers in consumergoods for purposes of financing inventory and floor planning. Such loans maybe evidenced by installment consumer paper which is transferred to thesavings bank by an endorser or guarantor, provided that such paper shallcarry a full or limited endorsement or guarantee of the person, partnership,association or corporation transferring the same and the savings bank shallhave a certificate of a responsible officer designated by its board for thatpurpose stating that the responsibility of the maker of such obligation hasbeen evaluated and the savings bank is relying primarily upon such maker forthe payment of such obligation.
5. In loans secured by savings accounts of the savings bank.
6. In loans secured by real estate.
7. A savings bank may issue credit cards, extend credit in connectiontherewith and otherwise engage in or participate in credit card operations.
8. In unsecured single payment loans to individuals with a maturity of notmore than 12 months.
9. In personal property, which term as used herein shall include fixturesacquired upon the specific request of and for lease to a customer, subject tothe following limitations:
a. The rentals receivable by the savings bank under the initial lease of anyitem of personal property shall at least equal the cost to the savings bankof such item of personal property;
b. The savings bank shall have a certificate of a responsible officerdesignated by its board for that purpose stating that the responsibility ofthe lessee has been evaluated and approved by such officer; and
c. Upon the expiration of any lease, whether by virtue of the lease agreementor by virtue of the retaking of possession by the savings bank, such personalproperty shall be relet, sold or otherwise disposed of, or charged off withinone year from the time of expiration of such lease.
10. In secured or unsecured credit to cover payment of checks, drafts orother fund transfer orders in excess of the available balance of an accounton which they are drawn, provided that such extensions of credit must be paidoff within 30 days after the extension of credit is made. The 30-daylimitation on repayment shall apply only to inadvertent overdrafts by theaccount owner and shall not apply to extensions of credit, agreed upon inwriting, whereby the borrower is permitted to access the line of credit bycheck, draft or other fund transfer order.
11. In secured or unsecured loans for commercial, corporate, business oragricultural purposes. Unless specifically authorized by the Commission, astate savings bank shall not invest more than 20 percent of its assets inloans for commercial, corporate, business or agricultural purposes. Thepercentage-of-assets limitations provided by the preceding sentence shall notapply to overdraft loans, commercial real estate loans, loans to a servicecorporation the stock of which is owned by the savings bank, or loans todealers in consumer goods for inventory or floor planning financing. A statesavings bank shall not invest more than 20 percent of its assets in loans theprimary security for which is nonresidential real estate.
12. A state savings bank may issue commercial and standby letters of creditin conformance with the Uniform Commercial Code (§ 8.1A-101 et seq.) or theUniform Customs and Practice for Documentary Credits and may pledgecollateral to secure its obligations thereunder, subject to the followingrequirements:
a. Each letter of credit shall conspicuously state that it is a letter ofcredit;
b. The issuer's undertaking shall contain a specified expiration date or befor a definite term, and shall be limited in amount;
c. The issuer's obligation to pay shall be solely dependent upon thepresentation of conforming documents as specified in the letter of credit,and not upon the factual performance or nonperformance by the parties to theunderlying transaction; and
d. The account party shall have an unqualified obligation to reimburse theissuer for payments made under the letter of credit.
13. In commercial paper rated in the highest or second highest categories asof the date of purchase, as shown by the most recently published rating by atleast two nationally recognized investment rating services; in corporate debtsecurities, including corporate debt securities convertible into stock, thatmay be sold with reasonable promptness at a price that corresponds reasonablyto their fair market value, and that are rated in at least the third highestcategory by a nationally recognized investment rating service in its mostrecently published ratings before the date of purchase of the security; andin shares in open-end management investment companies.
14. A state savings bank may invest in any other obligations, instruments orinvestments which are specifically approved by the Commissioner.
15. A state savings bank shall conform to the loans-to-one-borrowerlimitations contained in § 6.1-61.
16. A state savings bank shall have the same powers, and shall be subject tothe same limitations, as provided for state associations by §§ 6.1-194.5 and6.1-194.62.
§ 6.1-194.136. (Repealed effective October 1, 2010) General investmentauthority.
The assets of a state savings bank may be invested only in the following ways:
1. In real and personal property necessary for the conduct of its businessand in real estate to be held for its future accommodation. Such savings bankmay invest in an office building or buildings and appurtenances for thetransaction of such savings bank's business, or for the transaction of suchbusiness and for rental. No such investment may be made without the priorapproval of the Commissioner if the total amount of the investment exceedsthe aggregate amount of the savings bank's unimpaired capital funds.
2. In stock and other securities or obligations of a service corporation orcorporations. Such service corporation or corporations may charge and collectsuch finance charges, fees and interest rates as are authorized to statesavings banks, and shall be subject to state and local taxation in the samemanner as are state savings banks. Unless specifically authorized by theCommissioner, a state savings bank shall not invest more than 10 percent, inthe aggregate, of its assets in a service corporation or corporations. Suchservice corporation or corporations, directly or indirectly, may engage inproviding real estate brokerage services for property owned by a savings bankowning capital stock in the service corporation, by the service corporation,or by a joint venture in which the service corporation is a participant, butno such service corporation or corporations, state savings bank or holdingcompany which has control, as control is defined in § 6.1-381, over a statesavings bank may engage directly or indirectly in providing real estatebrokerage services for property owned by third parties. Nothing in thissubdivision shall prohibit a state savings bank or its affiliates or aholding company that has control over a state savings bank from engaging inthird party real estate brokerage in any state, territory or district, otherthan the Commonwealth, that permits such activities by its state charteredsavings institutions, or their affiliates or holding companies.
3. In obligations which are fully guaranteed as to principal and interest bythe United States or the Commonwealth; in stock or obligations of any FederalHome Loan Bank or Banks; in stock or obligations of the Federal DepositInsurance Corporation; in stock or obligations of Federal Reserve Banks; inobligations of, or issued by, any other state, territory or possession of theUnited States or political subdivision thereof, so long as such obligationscontinue to hold one of the four highest national investment grade ratings;in obligations of, or issued by, any city, town, county, district or othermunicipal corporation or political subdivision of the Commonwealth, or anypublic instrumentality or public authority created by act of the GeneralAssembly, so long as such obligations continue to hold one of the fourhighest national investment grade ratings; in stock, obligations or otherinstruments of the Federal National Mortgage Association, Government NationalMortgage Association, Federal Home Loan Mortgage Corporation, or anysuccessor or successors thereto; in obligations of, or guaranteed as toprincipal and interest by, the Dominion of Canada or any province thereof,provided that the principal and interest of any such obligations are payablein United States funds; in demand, time, or savings deposits, shares oraccounts, or other obligations of any financial institution the accounts ofwhich are insured by a federal agency; or in bankers' acceptances andcommercial paper which are eligible for purchase by Federal Reserve Banks.
4. In loans to individuals for personal, family or household purposes andloans reasonably incident thereto, to include loans to dealers in consumergoods for purposes of financing inventory and floor planning. Such loans maybe evidenced by installment consumer paper which is transferred to thesavings bank by an endorser or guarantor, provided that such paper shallcarry a full or limited endorsement or guarantee of the person, partnership,association or corporation transferring the same and the savings bank shallhave a certificate of a responsible officer designated by its board for thatpurpose stating that the responsibility of the maker of such obligation hasbeen evaluated and the savings bank is relying primarily upon such maker forthe payment of such obligation.
5. In loans secured by savings accounts of the savings bank.
6. In loans secured by real estate.
7. A savings bank may issue credit cards, extend credit in connectiontherewith and otherwise engage in or participate in credit card operations.
8. In unsecured single payment loans to individuals with a maturity of notmore than 12 months.
9. In personal property, which term as used herein shall include fixturesacquired upon the specific request of and for lease to a customer, subject tothe following limitations:
a. The rentals receivable by the savings bank under the initial lease of anyitem of personal property shall at least equal the cost to the savings bankof such item of personal property;
b. The savings bank shall have a certificate of a responsible officerdesignated by its board for that purpose stating that the responsibility ofthe lessee has been evaluated and approved by such officer; and
c. Upon the expiration of any lease, whether by virtue of the lease agreementor by virtue of the retaking of possession by the savings bank, such personalproperty shall be relet, sold or otherwise disposed of, or charged off withinone year from the time of expiration of such lease.
10. In secured or unsecured credit to cover payment of checks, drafts orother fund transfer orders in excess of the available balance of an accounton which they are drawn, provided that such extensions of credit must be paidoff within 30 days after the extension of credit is made. The 30-daylimitation on repayment shall apply only to inadvertent overdrafts by theaccount owner and shall not apply to extensions of credit, agreed upon inwriting, whereby the borrower is permitted to access the line of credit bycheck, draft or other fund transfer order.
11. In secured or unsecured loans for commercial, corporate, business oragricultural purposes. Unless specifically authorized by the Commission, astate savings bank shall not invest more than 20 percent of its assets inloans for commercial, corporate, business or agricultural purposes. Thepercentage-of-assets limitations provided by the preceding sentence shall notapply to overdraft loans, commercial real estate loans, loans to a servicecorporation the stock of which is owned by the savings bank, or loans todealers in consumer goods for inventory or floor planning financing. A statesavings bank shall not invest more than 20 percent of its assets in loans theprimary security for which is nonresidential real estate.
12. A state savings bank may issue commercial and standby letters of creditin conformance with the Uniform Commercial Code (§ 8.1A-101 et seq.) or theUniform Customs and Practice for Documentary Credits and may pledgecollateral to secure its obligations thereunder, subject to the followingrequirements:
a. Each letter of credit shall conspicuously state that it is a letter ofcredit;
b. The issuer's undertaking shall contain a specified expiration date or befor a definite term, and shall be limited in amount;
c. The issuer's obligation to pay shall be solely dependent upon thepresentation of conforming documents as specified in the letter of credit,and not upon the factual performance or nonperformance by the parties to theunderlying transaction; and
d. The account party shall have an unqualified obligation to reimburse theissuer for payments made under the letter of credit.
13. In commercial paper rated in the highest or second highest categories asof the date of purchase, as shown by the most recently published rating by atleast two nationally recognized investment rating services; in corporate debtsecurities, including corporate debt securities convertible into stock, thatmay be sold with reasonable promptness at a price that corresponds reasonablyto their fair market value, and that are rated in at least the third highestcategory by a nationally recognized investment rating service in its mostrecently published ratings before the date of purchase of the security; andin shares in open-end management investment companies.
14. A state savings bank may invest in any other obligations, instruments orinvestments which are specifically approved by the Commissioner.
15. A state savings bank shall conform to the loans-to-one-borrowerlimitations contained in § 6.1-61.
16. A state savings bank shall have the same powers, and shall be subject tothe same limitations, as provided for state associations by §§ 6.1-194.5 and6.1-194.62.
§ 6.1-194.136. (Repealed effective October 1, 2010) General investmentauthority.
The assets of a state savings bank may be invested only in the following ways:
1. In real and personal property necessary for the conduct of its businessand in real estate to be held for its future accommodation. Such savings bankmay invest in an office building or buildings and appurtenances for thetransaction of such savings bank's business, or for the transaction of suchbusiness and for rental. No such investment may be made without the priorapproval of the Commissioner if the total amount of the investment exceedsthe aggregate amount of the savings bank's unimpaired capital funds.
2. In stock and other securities or obligations of a service corporation orcorporations. Such service corporation or corporations may charge and collectsuch finance charges, fees and interest rates as are authorized to statesavings banks, and shall be subject to state and local taxation in the samemanner as are state savings banks. Unless specifically authorized by theCommissioner, a state savings bank shall not invest more than 10 percent, inthe aggregate, of its assets in a service corporation or corporations. Suchservice corporation or corporations, directly or indirectly, may engage inproviding real estate brokerage services for property owned by a savings bankowning capital stock in the service corporation, by the service corporation,or by a joint venture in which the service corporation is a participant, butno such service corporation or corporations, state savings bank or holdingcompany which has control, as control is defined in § 6.1-381, over a statesavings bank may engage directly or indirectly in providing real estatebrokerage services for property owned by third parties. Nothing in thissubdivision shall prohibit a state savings bank or its affiliates or aholding company that has control over a state savings bank from engaging inthird party real estate brokerage in any state, territory or district, otherthan the Commonwealth, that permits such activities by its state charteredsavings institutions, or their affiliates or holding companies.
3. In obligations which are fully guaranteed as to principal and interest bythe United States or the Commonwealth; in stock or obligations of any FederalHome Loan Bank or Banks; in stock or obligations of the Federal DepositInsurance Corporation; in stock or obligations of Federal Reserve Banks; inobligations of, or issued by, any other state, territory or possession of theUnited States or political subdivision thereof, so long as such obligationscontinue to hold one of the four highest national investment grade ratings;in obligations of, or issued by, any city, town, county, district or othermunicipal corporation or political subdivision of the Commonwealth, or anypublic instrumentality or public authority created by act of the GeneralAssembly, so long as such obligations continue to hold one of the fourhighest national investment grade ratings; in stock, obligations or otherinstruments of the Federal National Mortgage Association, Government NationalMortgage Association, Federal Home Loan Mortgage Corporation, or anysuccessor or successors thereto; in obligations of, or guaranteed as toprincipal and interest by, the Dominion of Canada or any province thereof,provided that the principal and interest of any such obligations are payablein United States funds; in demand, time, or savings deposits, shares oraccounts, or other obligations of any financial institution the accounts ofwhich are insured by a federal agency; or in bankers' acceptances andcommercial paper which are eligible for purchase by Federal Reserve Banks.
4. In loans to individuals for personal, family or household purposes andloans reasonably incident thereto, to include loans to dealers in consumergoods for purposes of financing inventory and floor planning. Such loans maybe evidenced by installment consumer paper which is transferred to thesavings bank by an endorser or guarantor, provided that such paper shallcarry a full or limited endorsement or guarantee of the person, partnership,association or corporation transferring the same and the savings bank shallhave a certificate of a responsible officer designated by its board for thatpurpose stating that the responsibility of the maker of such obligation hasbeen evaluated and the savings bank is relying primarily upon such maker forthe payment of such obligation.
5. In loans secured by savings accounts of the savings bank.
6. In loans secured by real estate.
7. A savings bank may issue credit cards, extend credit in connectiontherewith and otherwise engage in or participate in credit card operations.
8. In unsecured single payment loans to individuals with a maturity of notmore than 12 months.
9. In personal property, which term as used herein shall include fixturesacquired upon the specific request of and for lease to a customer, subject tothe following limitations:
a. The rentals receivable by the savings bank under the initial lease of anyitem of personal property shall at least equal the cost to the savings bankof such item of personal property;
b. The savings bank shall have a certificate of a responsible officerdesignated by its board for that purpose stating that the responsibility ofthe lessee has been evaluated and approved by such officer; and
c. Upon the expiration of any lease, whether by virtue of the lease agreementor by virtue of the retaking of possession by the savings bank, such personalproperty shall be relet, sold or otherwise disposed of, or charged off withinone year from the time of expiration of such lease.
10. In secured or unsecured credit to cover payment of checks, drafts orother fund transfer orders in excess of the available balance of an accounton which they are drawn, provided that such extensions of credit must be paidoff within 30 days after the extension of credit is made. The 30-daylimitation on repayment shall apply only to inadvertent overdrafts by theaccount owner and shall not apply to extensions of credit, agreed upon inwriting, whereby the borrower is permitted to access the line of credit bycheck, draft or other fund transfer order.
11. In secured or unsecured loans for commercial, corporate, business oragricultural purposes. Unless specifically authorized by the Commission, astate savings bank shall not invest more than 20 percent of its assets inloans for commercial, corporate, business or agricultural purposes. Thepercentage-of-assets limitations provided by the preceding sentence shall notapply to overdraft loans, commercial real estate loans, loans to a servicecorporation the stock of which is owned by the savings bank, or loans todealers in consumer goods for inventory or floor planning financing. A statesavings bank shall not invest more than 20 percent of its assets in loans theprimary security for which is nonresidential real estate.
12. A state savings bank may issue commercial and standby letters of creditin conformance with the Uniform Commercial Code (§ 8.1A-101 et seq.) or theUniform Customs and Practice for Documentary Credits and may pledgecollateral to secure its obligations thereunder, subject to the followingrequirements:
a. Each letter of credit shall conspicuously state that it is a letter ofcredit;
b. The issuer's undertaking shall contain a specified expiration date or befor a definite term, and shall be limited in amount;
c. The issuer's obligation to pay shall be solely dependent upon thepresentation of conforming documents as specified in the letter of credit,and not upon the factual performance or nonperformance by the parties to theunderlying transaction; and
d. The account party shall have an unqualified obligation to reimburse theissuer for payments made under the letter of credit.
13. In commercial paper rated in the highest or second highest categories asof the date of purchase, as shown by the most recently published rating by atleast two nationally recognized investment rating services; in corporate debtsecurities, including corporate debt securities convertible into stock, thatmay be sold with reasonable promptness at a price that corresponds reasonablyto their fair market value, and that are rated in at least the third highestcategory by a nationally recognized investment rating service in its mostrecently published ratings before the date of purchase of the security; andin shares in open-end management investment companies.
14. A state savings bank may invest in any other obligations, instruments orinvestments which are specifically approved by the Commissioner.
15. A state savings bank shall conform to the loans-to-one-borrowerlimitations contained in § 6.1-61.
16. A state savings bank shall have the same powers, and shall be subject tothe same limitations, as provided for state associations by §§ 6.1-194.5 and6.1-194.62.
