6.2-1057 - (Effective October 1, 2010) Deposits held or received by trust subsidiaries or subsidiary bank with affiliate banks. - Virginia Statutes

§ 6.2-1057. (Effective October 1, 2010) Deposits held or received by trustsubsidiaries or subsidiary bank with affiliate banks.

A. Funds received or held by a trust subsidiary or subsidiary bank whileawaiting investment or distribution shall not be used by an affiliate bank orowning bank in the conduct of its business or deposited in such bank, unlessthe bank first delivers to its trust department or to the trust subsidiary orsubsidiary bank, as collateral security therefor, securities of any of theclasses described in subdivision B 1, B 2, or B 3 of § 6.2-1005, in an amountdescribed in subsection B.

B. The securities deposited as collateral as required by subsection A shallbe owned by the bank and shall at all times be at least equal in market valueto the amount of trust funds held on deposit by such trust subsidiary orsubsidiary bank, less such amount thereof as are insured by the FederalDeposit Insurance Corporation.

C. In the event of the failure or liquidation of such bank, the trustsubsidiary or subsidiary bank and the owners of the beneficial interest insuch trust funds shall have a lien on the bonds or other securities so setapart, in addition to their claims against the estate of the bank.

(1974, c. 286, § 6.1-32.8; 1991, c. 282; 2010, c. 794.)