6.2-825 - (Effective October 1, 2010) State bank becoming national bank; notice required; effect on liabilities. - Virginia Statutes

§ 6.2-825. (Effective October 1, 2010) State bank becoming national bank;notice required; effect on liabilities.

A. Any bank incorporated under the laws of the Commonwealth may, uponcompliance with federal law, be converted into a national banking association.

B. When any state bank becomes a corporation for carrying on the business ofbanking under federal law, it shall notify the Commission of such fact andfile with the Commission a copy of its authorization as a national bankingassociation certified by the Comptroller of the Currency. Such bank shallthereupon cease to be a corporation under the laws of the Commonwealth,except that, for a period not exceeding three years thereafter, its corporateexistence shall be deemed to continue for the purposes of (i) prosecuting ordefending suits by or against it and (ii) enabling it to settle and close itsaffairs, to dispose of and convey its property, and to divide its capital,but not for the purpose of continuing the business for which such bank wasestablished.

C. A conversion from a state to a national bank shall not release the statebank from its obligations to pay and discharge (i) all the liabilitiescreated by law or incurred by it before becoming a national bankingassociation, (ii) any tax imposed by the laws of the Commonwealth up to thedate of its becoming such national banking association in proportion to thetime which has elapsed since the next preceding payment therefor, or (iii)any assessment, penalty, or forfeiture imposed or incurred under the laws ofthe Commonwealth up to the date it became a national banking association.

(Code 1950, § 6-18; 1966, c. 584, § 6.1-35; 2010, c. 794.)