6.2-872 - (Effective October 1, 2010) For what purpose banks may purchase, hold, and convey real estate. - Virginia Statutes

§ 6.2-872. (Effective October 1, 2010) For what purpose banks may purchase,hold, and convey real estate.

A. In addition to the authority provided in § 6.2-873, every bankincorporated under the laws of the Commonwealth may purchase, hold, andconvey the following real estate for the purposes stated and for no other:

1. Real estate that is desirable and prudent for its present or futureaccommodation in the transaction of its business;

2. Real estate that is mortgaged or otherwise encumbered to it in good faithby way of security for debts contracted;

3. Real estate that is conveyed to it in satisfaction of debts previouslycontracted in the course of its dealings; and

4. Real estate it purchased at sales under judgments, decrees, mortgages, ordeeds of trust held by it, in whole or in part, or purchased to secure debtsdue to it. No bank shall possess any real estate that is encumbered by amortgage or other encumbrance, or hold the title to and possess any realestate conveyed to it in satisfaction of debt or purchased by it for theprotection of obligations secured thereby, for a longer period than 10 yearswithout the written approval of the Commission. If within such 10-yearperiod, a bank shall have reduced upon its books the asset value of suchmortgage, deed of trust, or real estate to the nominal sum of one dollar, itmay thereafter continue to hold and own the same indefinitely without theapproval of the Commission.

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, § 6.1-59; 1988, c. 296; 2010, c. 794.)