6.2-819 - (Effective October 1, 2010) Authority to engage in trust business; permission of Commission required. - Virginia Statutes

§ 6.2-819. (Effective October 1, 2010) Authority to engage in trust business;permission of Commission required.

A. A bank shall not engage in the trust business unless its articles ofincorporation state that one of its purposes is to engage in the trustbusiness.

B. A bank shall not commence to engage in the trust business without firstobtaining permission from the Commission. The Commission shall not grant suchpermission unless it finds that:

1. The bank's capital structure is sufficiently strong to support suchadditional undertaking;

2. The personnel who will direct the proposed trust department have adequateexperience and training, and will devote sufficient time to its affairs toinsure compliance with the law and to protect the bank against surcharge; and

3. The granting of trust powers to the bank will be in the public interest.

C. Notwithstanding the provisions of subsection B, any bank actively engagedin the trust business on January 1, 1966, may continue in the trust businesswithout the Commission's permission.

D. A bank authorized to do a trust business shall conduct such business inaccordance with the applicable provisions of Chapter 10 (§ 6.2-1000 et seq.).

(Code 1950, § 6-91; 1958, c. 139; 1966, c. 584, § 6.1-16; 1976, c. 658; 2010,c. 794.)