6.2-871 - (Effective October 1, 2010) Investment in stock or securities of bank service corporations. - Virginia Statutes

§ 6.2-871. (Effective October 1, 2010) Investment in stock or securities ofbank service corporations.

A. As used in this section, "bank service corporation" means a corporationengaged primarily in rendering services, other than the renting of the bankpremises or the furnishing of furniture or fixtures, to two or more banks.

B. A bank may acquire, own, and hold the stock and other securities orobligations of a bank service corporation in an amount not to exceed 10percent of the bank's capital stock and permanent surplus. A bank may notinvest in any bank service corporation unless it uses or intends to use theservices of the bank service corporation. A bank may not invest in more thanone bank service corporation without the consent of the Commission.

C. Stock in a Federal Reserve Bank shall not be considered stock of a bankservice corporation within the meaning of this section.

(Code 1950, § 6-49.1; 1962, c. 38; 1966, c. 584, § 6.1-58; 2010, c. 794.)