§ 6.2-1011. (Effective October 1, 2010) Voting of bank shares held by trustinstitution as fiduciary; when disqualified.
A. As used in this section, "banking corporation" includes a bank or acorporation or company that is a bank holding company under 12 U.S.C. § 1841,as amended from time to time.
B. When shares of a national banking association or of a banking corporationorganized under the laws of the Commonwealth or another state are held by atrust institution that is serving as a personal representative of a decedent,trustee, guardian of any infant, agent or in any other fiduciary capacity,the trust institution may not (i) vote or participate in the voting of anyvoting securities of such bank if the securities held in such fiduciarycapacity, together with all the other voting securities of such bank held ina fiduciary capacity, exceed 25 percent of the outstanding voting securitiesof such bank or (ii) vote such voting securities, if the voting securities ofsuch bank held as a personal representative of the decedent, together withall other voting securities of such bank held in a fiduciary capacity, exceedfive percent, unless there has been a determination by the Board of Governorsof the Federal Reserve System that the right to vote five percent or more ofthe voting securities but less than 25 percent thereof does not constitutecontrol of that bank.
C. If there is any personal representative, trustee, guardian of any infant,or other fiduciary in addition to the trust institution in such fiduciarycapacity, the other fiduciary, if not a director, officer, or employee of thetrust institution, may vote such shares. If the trust institution is the solefiduciary, or if the trust institution is serving along with a director,officer, or employee of the trust institution, it may petition the court, asprovided in subsection D, for the appointment of a cofiduciary for the solepurpose of voting such bank shares.
D. When a trust institution has qualified or is serving under the laws of theCommonwealth as personal representative of a decedent, trustee, guardian ofany infant, or in any other fiduciary capacity, and in such estate or trust,there are shares of stock of a national banking association or a bankingcorporation organized under the laws of the Commonwealth or another state,and the trust institution is disqualified under subsection B from voting suchshares, the trust institution or any interested party may petition the courtin which the institution qualified or is capable to qualify to appoint acofiduciary for the sole purpose of voting the shares of the bankingassociation or banking corporation held by the estate or trust, which thetrust institution is disqualified from voting. The appointment andqualification may be ex parte, and no prior notice to the beneficiary shallbe required. The court at the time of such qualification may relieve thecofiduciary of any obligation for the giving of surety on his bond, and ifthe appointment of the cofiduciary is limited to voting of the bank stock,such order may provide that the cofiduciary shall not be liable oraccountable as a fiduciary in the administration of such estate or trustexcept for the breach of any fiduciary duty in voting or failing to vote suchbank stock. No director, officer, or employee of a trust institution shall beeligible to be named cofiduciary under the provisions of this subsection.
(1972, c. 203, §§ 6.1-31.1, 6.1-31.2; 1974, c. 665; 2010, c. 794.)
§ 6.2-1011. (Effective October 1, 2010) Voting of bank shares held by trustinstitution as fiduciary; when disqualified.
A. As used in this section, "banking corporation" includes a bank or acorporation or company that is a bank holding company under 12 U.S.C. § 1841,as amended from time to time.
B. When shares of a national banking association or of a banking corporationorganized under the laws of the Commonwealth or another state are held by atrust institution that is serving as a personal representative of a decedent,trustee, guardian of any infant, agent or in any other fiduciary capacity,the trust institution may not (i) vote or participate in the voting of anyvoting securities of such bank if the securities held in such fiduciarycapacity, together with all the other voting securities of such bank held ina fiduciary capacity, exceed 25 percent of the outstanding voting securitiesof such bank or (ii) vote such voting securities, if the voting securities ofsuch bank held as a personal representative of the decedent, together withall other voting securities of such bank held in a fiduciary capacity, exceedfive percent, unless there has been a determination by the Board of Governorsof the Federal Reserve System that the right to vote five percent or more ofthe voting securities but less than 25 percent thereof does not constitutecontrol of that bank.
C. If there is any personal representative, trustee, guardian of any infant,or other fiduciary in addition to the trust institution in such fiduciarycapacity, the other fiduciary, if not a director, officer, or employee of thetrust institution, may vote such shares. If the trust institution is the solefiduciary, or if the trust institution is serving along with a director,officer, or employee of the trust institution, it may petition the court, asprovided in subsection D, for the appointment of a cofiduciary for the solepurpose of voting such bank shares.
D. When a trust institution has qualified or is serving under the laws of theCommonwealth as personal representative of a decedent, trustee, guardian ofany infant, or in any other fiduciary capacity, and in such estate or trust,there are shares of stock of a national banking association or a bankingcorporation organized under the laws of the Commonwealth or another state,and the trust institution is disqualified under subsection B from voting suchshares, the trust institution or any interested party may petition the courtin which the institution qualified or is capable to qualify to appoint acofiduciary for the sole purpose of voting the shares of the bankingassociation or banking corporation held by the estate or trust, which thetrust institution is disqualified from voting. The appointment andqualification may be ex parte, and no prior notice to the beneficiary shallbe required. The court at the time of such qualification may relieve thecofiduciary of any obligation for the giving of surety on his bond, and ifthe appointment of the cofiduciary is limited to voting of the bank stock,such order may provide that the cofiduciary shall not be liable oraccountable as a fiduciary in the administration of such estate or trustexcept for the breach of any fiduciary duty in voting or failing to vote suchbank stock. No director, officer, or employee of a trust institution shall beeligible to be named cofiduciary under the provisions of this subsection.
(1972, c. 203, §§ 6.1-31.1, 6.1-31.2; 1974, c. 665; 2010, c. 794.)
§ 6.2-1011. (Effective October 1, 2010) Voting of bank shares held by trustinstitution as fiduciary; when disqualified.
A. As used in this section, "banking corporation" includes a bank or acorporation or company that is a bank holding company under 12 U.S.C. § 1841,as amended from time to time.
B. When shares of a national banking association or of a banking corporationorganized under the laws of the Commonwealth or another state are held by atrust institution that is serving as a personal representative of a decedent,trustee, guardian of any infant, agent or in any other fiduciary capacity,the trust institution may not (i) vote or participate in the voting of anyvoting securities of such bank if the securities held in such fiduciarycapacity, together with all the other voting securities of such bank held ina fiduciary capacity, exceed 25 percent of the outstanding voting securitiesof such bank or (ii) vote such voting securities, if the voting securities ofsuch bank held as a personal representative of the decedent, together withall other voting securities of such bank held in a fiduciary capacity, exceedfive percent, unless there has been a determination by the Board of Governorsof the Federal Reserve System that the right to vote five percent or more ofthe voting securities but less than 25 percent thereof does not constitutecontrol of that bank.
C. If there is any personal representative, trustee, guardian of any infant,or other fiduciary in addition to the trust institution in such fiduciarycapacity, the other fiduciary, if not a director, officer, or employee of thetrust institution, may vote such shares. If the trust institution is the solefiduciary, or if the trust institution is serving along with a director,officer, or employee of the trust institution, it may petition the court, asprovided in subsection D, for the appointment of a cofiduciary for the solepurpose of voting such bank shares.
D. When a trust institution has qualified or is serving under the laws of theCommonwealth as personal representative of a decedent, trustee, guardian ofany infant, or in any other fiduciary capacity, and in such estate or trust,there are shares of stock of a national banking association or a bankingcorporation organized under the laws of the Commonwealth or another state,and the trust institution is disqualified under subsection B from voting suchshares, the trust institution or any interested party may petition the courtin which the institution qualified or is capable to qualify to appoint acofiduciary for the sole purpose of voting the shares of the bankingassociation or banking corporation held by the estate or trust, which thetrust institution is disqualified from voting. The appointment andqualification may be ex parte, and no prior notice to the beneficiary shallbe required. The court at the time of such qualification may relieve thecofiduciary of any obligation for the giving of surety on his bond, and ifthe appointment of the cofiduciary is limited to voting of the bank stock,such order may provide that the cofiduciary shall not be liable oraccountable as a fiduciary in the administration of such estate or trustexcept for the breach of any fiduciary duty in voting or failing to vote suchbank stock. No director, officer, or employee of a trust institution shall beeligible to be named cofiduciary under the provisions of this subsection.
(1972, c. 203, §§ 6.1-31.1, 6.1-31.2; 1974, c. 665; 2010, c. 794.)
