13.1-338 - Purchasing business of other associations, persons, firms or corporations; stock issued. - Virginia Statutes

§ 13.1-338. Purchasing business of other associations, persons, firms orcorporations; stock issued.

Whenever an association organized hereunder with preferred capital stockshall purchase the stock or any property, or any interest in any property ofany person, firm or corporation or association, it may by agreement with theother party or parties to the transaction discharge the obligation soincurred, wholly or in part, by exchanging for the acquired interest sharesof its preferred capital stock to an amount which at par value would equal afair market value of the stock or interest so purchased, as determined by theboard of directors. In that case the transfer to the association of the stockor interest purchased shall be equivalent to payment in cash for the sharesof stock issued.

(Code 1950, § 13-285; 1956, c. 428.)