6.2-906 - (Effective October 1, 2010) Disclosure of irregularities; Commission's powers. - Virginia Statutes

§ 6.2-906. (Effective October 1, 2010) Disclosure of irregularities;Commission's powers.

A. If upon the examination of any bank, the Commission ascertains that thebanking laws of the Commonwealth are not being fully observed, that anyirregularities are being practiced, or that the bank's capital has been or isin danger of being impaired, the Commission shall give immediate noticethereof to the officers and directors of the bank. In addition, if it isdeemed necessary in order to conserve the assets of such bank or to protectthe interests of depositors and creditors thereof, the Commission may do anyone or more of the following:

1. Temporarily suspend the right of such bank to receive any further deposits;

2. Temporarily close such bank, for a period not exceeding 60 days, whichperiod may be further extended for one or more 60-day periods as theCommission may deem necessary;

3. Require the officers and directors of the bank to liquidate itsoutstanding loans insofar as shall be required;

4. Require that any impairment of the capital stock be made good;

5. Require that any irregularities be promptly corrected;

6. Require the bank to make reports, daily or at such other times as may berequired to the Commission, as to the results achieved in carrying out theorders of the Commission; and

7. Without examination, close, for such period as the Commission may deemnecessary, any bank facing an emergency due to withdrawal of deposits orotherwise, or, without closing such bank, grant to it the right to suspend orlimit the withdrawal of deposits, for such period as the Commission maydetermine.

B. If any bank fails or refuses to comply with any such order of theCommission, or if the Commission shall determine that a receiver for any suchbank should be appointed, the Commission may apply for the appointment of areceiver to take charge of the business affairs and assets of the bank and towind up its affairs as provided in this chapter.

(Code 1950, § 6-113; 1966, c. 584, § 6.1-92; 1976, c. 658; 2010, c. 794.)