§ 6.2-1142. (Effective October 1, 2010) Conversion of federal financialinstitution into state savings institution or state bank.
A. A federal financial institution doing business in the Commonwealth maybecome a state savings institution, and such a federal financial institutionthat is a stock institution may become a state bank, as follows:
1. In either case, the federal financial institution shall take such actionas will under federal law and regulations terminate its existence as afederal financial institution on a specified date;
2. In the case of a conversion to a state savings institution, the directorsof the federal financial institution shall organize a corporation under thischapter and, if a stock institution, the Virginia Stock Corporation Act (§13.1-601 et seq.), or if a mutual savings institution, the Virginia NonstockCorporation Act (§ 13.1-801 et seq.), and the new corporation shall apply fora certificate of authority to do business under § 6.2-1118; and
3. In the case of a conversion to a state bank, the directors of the federalfinancial institution shall organize a corporation under Chapter 8 (§ 6.2-800et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et seq.), and thenew corporation shall apply for a certificate of authority to do businessunder § 6.2-816. If the applicant meets the standards established by §6.2-816, the Commission may issue it a certificate of authority to begin abanking business. The order shall designate the main office of the federalfinancial institution as the main office of the resulting bank, and theresulting bank shall be permitted to operate all branch offices of the formerfederal financial institution. Within one year of the date of such aconversion, the resulting bank shall conform its assets and operations to theprovisions of law regulating the operation of banks. The Commission may grantsuch resulting bank additional one-year periods, not to exceed a total offour additional years, in which to conform its assets and operations to theprovisions of law regulating the operation of banks.
B. The former federal financial institution converting to a state savingsinstitution or a state bank shall transact no business as a state savingsinstitution or as a state bank other than that relating to its organizationuntil its certificate of authority to do business has been granted and itsdissolution as a federal financial institution has become effective.
C. As soon as the certificate of authority to do business has been grantedand its dissolution as a federal financial institution has become effective,all the property of the federal financial institution shall by operation oflaw and without any further act or deed be vested in and become the propertyof the state savings institution or state bank. The state savings institutionor state bank shall (i) have, hold and enjoy the same in its own right asfully and to the same extent as the same was possessed, held or enjoyed bythe federal financial institution and (ii) become, and continue to be,responsible for all the obligations, duties and agreements of the federalfinancial institution, including taxes and other liabilities created by lawor incurred by it before becoming a state savings institution or state bankto the same extent as though the conversion had not taken place.
D. Upon conversion of a federal financial institution to a state savingsbank, the state savings bank shall have the right to continue to operate allbranch offices then in existence without having to obtain the approval of theCommission pursuant to § 6.2-1133.
(Code 1950, §§ 6-201.45, 6-201.46, 6-201.47; 1960, c. 402; 1966, c. 584, §§6.1-175, 6.1-176, 6.1-177; 1972, c. 796, §§ 6.1-195.54, 6.1-195.55,6.1-195.56; 1975, c. 129; 1985, c. 425, §§ 6.1-194.35, 6.1-194.36,6.1-194.37; 1991, c. 230, §§ 6.1-194.126, 6.1-194.127, 6.1-194.128; 1995, c.133; 2010, c. 794.)
§ 6.2-1142. (Effective October 1, 2010) Conversion of federal financialinstitution into state savings institution or state bank.
A. A federal financial institution doing business in the Commonwealth maybecome a state savings institution, and such a federal financial institutionthat is a stock institution may become a state bank, as follows:
1. In either case, the federal financial institution shall take such actionas will under federal law and regulations terminate its existence as afederal financial institution on a specified date;
2. In the case of a conversion to a state savings institution, the directorsof the federal financial institution shall organize a corporation under thischapter and, if a stock institution, the Virginia Stock Corporation Act (§13.1-601 et seq.), or if a mutual savings institution, the Virginia NonstockCorporation Act (§ 13.1-801 et seq.), and the new corporation shall apply fora certificate of authority to do business under § 6.2-1118; and
3. In the case of a conversion to a state bank, the directors of the federalfinancial institution shall organize a corporation under Chapter 8 (§ 6.2-800et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et seq.), and thenew corporation shall apply for a certificate of authority to do businessunder § 6.2-816. If the applicant meets the standards established by §6.2-816, the Commission may issue it a certificate of authority to begin abanking business. The order shall designate the main office of the federalfinancial institution as the main office of the resulting bank, and theresulting bank shall be permitted to operate all branch offices of the formerfederal financial institution. Within one year of the date of such aconversion, the resulting bank shall conform its assets and operations to theprovisions of law regulating the operation of banks. The Commission may grantsuch resulting bank additional one-year periods, not to exceed a total offour additional years, in which to conform its assets and operations to theprovisions of law regulating the operation of banks.
B. The former federal financial institution converting to a state savingsinstitution or a state bank shall transact no business as a state savingsinstitution or as a state bank other than that relating to its organizationuntil its certificate of authority to do business has been granted and itsdissolution as a federal financial institution has become effective.
C. As soon as the certificate of authority to do business has been grantedand its dissolution as a federal financial institution has become effective,all the property of the federal financial institution shall by operation oflaw and without any further act or deed be vested in and become the propertyof the state savings institution or state bank. The state savings institutionor state bank shall (i) have, hold and enjoy the same in its own right asfully and to the same extent as the same was possessed, held or enjoyed bythe federal financial institution and (ii) become, and continue to be,responsible for all the obligations, duties and agreements of the federalfinancial institution, including taxes and other liabilities created by lawor incurred by it before becoming a state savings institution or state bankto the same extent as though the conversion had not taken place.
D. Upon conversion of a federal financial institution to a state savingsbank, the state savings bank shall have the right to continue to operate allbranch offices then in existence without having to obtain the approval of theCommission pursuant to § 6.2-1133.
(Code 1950, §§ 6-201.45, 6-201.46, 6-201.47; 1960, c. 402; 1966, c. 584, §§6.1-175, 6.1-176, 6.1-177; 1972, c. 796, §§ 6.1-195.54, 6.1-195.55,6.1-195.56; 1975, c. 129; 1985, c. 425, §§ 6.1-194.35, 6.1-194.36,6.1-194.37; 1991, c. 230, §§ 6.1-194.126, 6.1-194.127, 6.1-194.128; 1995, c.133; 2010, c. 794.)
§ 6.2-1142. (Effective October 1, 2010) Conversion of federal financialinstitution into state savings institution or state bank.
A. A federal financial institution doing business in the Commonwealth maybecome a state savings institution, and such a federal financial institutionthat is a stock institution may become a state bank, as follows:
1. In either case, the federal financial institution shall take such actionas will under federal law and regulations terminate its existence as afederal financial institution on a specified date;
2. In the case of a conversion to a state savings institution, the directorsof the federal financial institution shall organize a corporation under thischapter and, if a stock institution, the Virginia Stock Corporation Act (§13.1-601 et seq.), or if a mutual savings institution, the Virginia NonstockCorporation Act (§ 13.1-801 et seq.), and the new corporation shall apply fora certificate of authority to do business under § 6.2-1118; and
3. In the case of a conversion to a state bank, the directors of the federalfinancial institution shall organize a corporation under Chapter 8 (§ 6.2-800et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et seq.), and thenew corporation shall apply for a certificate of authority to do businessunder § 6.2-816. If the applicant meets the standards established by §6.2-816, the Commission may issue it a certificate of authority to begin abanking business. The order shall designate the main office of the federalfinancial institution as the main office of the resulting bank, and theresulting bank shall be permitted to operate all branch offices of the formerfederal financial institution. Within one year of the date of such aconversion, the resulting bank shall conform its assets and operations to theprovisions of law regulating the operation of banks. The Commission may grantsuch resulting bank additional one-year periods, not to exceed a total offour additional years, in which to conform its assets and operations to theprovisions of law regulating the operation of banks.
B. The former federal financial institution converting to a state savingsinstitution or a state bank shall transact no business as a state savingsinstitution or as a state bank other than that relating to its organizationuntil its certificate of authority to do business has been granted and itsdissolution as a federal financial institution has become effective.
C. As soon as the certificate of authority to do business has been grantedand its dissolution as a federal financial institution has become effective,all the property of the federal financial institution shall by operation oflaw and without any further act or deed be vested in and become the propertyof the state savings institution or state bank. The state savings institutionor state bank shall (i) have, hold and enjoy the same in its own right asfully and to the same extent as the same was possessed, held or enjoyed bythe federal financial institution and (ii) become, and continue to be,responsible for all the obligations, duties and agreements of the federalfinancial institution, including taxes and other liabilities created by lawor incurred by it before becoming a state savings institution or state bankto the same extent as though the conversion had not taken place.
D. Upon conversion of a federal financial institution to a state savingsbank, the state savings bank shall have the right to continue to operate allbranch offices then in existence without having to obtain the approval of theCommission pursuant to § 6.2-1133.
(Code 1950, §§ 6-201.45, 6-201.46, 6-201.47; 1960, c. 402; 1966, c. 584, §§6.1-175, 6.1-176, 6.1-177; 1972, c. 796, §§ 6.1-195.54, 6.1-195.55,6.1-195.56; 1975, c. 129; 1985, c. 425, §§ 6.1-194.35, 6.1-194.36,6.1-194.37; 1991, c. 230, §§ 6.1-194.126, 6.1-194.127, 6.1-194.128; 1995, c.133; 2010, c. 794.)
