6.1-59 - (Repealed effective October 1, 2010) For what purpose banks may purchase, hold and convey real estate. - Virginia Statutes

§ 6.1-59. (Repealed effective October 1, 2010) For what purpose banks maypurchase, hold and convey real estate.

A. In addition to the authority provided in § 6.1-59.1, every bankincorporated under the laws of this Commonwealth may purchase, hold andconvey real estate for the following purposes and for no other:

1. Such as shall be desirable and prudent for its present or futureaccommodation in the transaction of its business;

2. Such as shall be mortgaged or otherwise encumbered to it in good faith byway of security for debts contracted;

3. Such as shall be conveyed to it in satisfaction of debts previouslycontracted in the course of its dealings;

4. Such as it shall purchase at sales under judgments, decrees, mortgages, ordeeds of trust held by it, in whole or in part, or shall purchase to securedebts due to it. No such bank shall hold the possession of any real estateunder mortgage or other encumbrance or the title and possession of any realestate conveyed to it in satisfaction of debt or purchased by it for theprotection of obligations secured thereby, for a longer period than ten yearsexcept with the written consent and approval of the State CorporationCommission; however, if, within such ten-year period, a bank shall havereduced upon its books the asset value of such mortgage, deed of trust orreal estate to the nominal sum of one dollar, it may thereafter continue tohold and own the same indefinitely without such consent and approval of theCommission.

B. Nothing in this section shall affect the validity of the title to any suchreal estate conveyed or transferred by a bank.

(Code 1950, § 6-50; 1966, c. 584; 1988, c. 296.)