6.2-886 - (Effective October 1, 2010) Regulation of controlled subsidiary corporations by Commission. - Virginia Statutes

§ 6.2-886. (Effective October 1, 2010) Regulation of controlled subsidiarycorporations by Commission.

A. A controlled subsidiary corporation shall be subject to audit andexamination by the Commission whether or not it is an affiliate as defined in§ 6.2-899. The controlled subsidiary corporation shall pay such examinationfees as shall be imposed under § 6.2-908 for the examination of trustdepartments. If upon examination the Commission shall ascertain that thecorporation is created or operated in violation of this section or that themanner of operation is detrimental to the business of the parent bank and itsdepositors, it may order the bank to dispose of all or part of its investmentin such corporation upon such terms as the Commission may deem proper.

B. A controlled subsidiary may not merge or consolidate unless the survivingcorporation is itself a controlled subsidiary corporation, or unless as aresult of such merger or consolidation the bank divests itself of all stockor other securities that are held pursuant to the authority granted by thissection.

C. The Commission shall have the same powers over controlled subsidiarycorporations as it has over banks under §§ 6.2-913, 6.2-915, 6.2-917,6.2-918, and 6.2-919, excepting those controlled subsidiary corporations thathave no state banks as stockholders.

(1968, c. 270, § 6.1-58.1; 1978, c. 797; 1988, c. 296; 1993, c. 64; 1997, c.277; 1999, c. 60; 2001, c. 508; 2003, cc. 536, 558; 2010, c. 794.)