reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise:
"Affiliate" means generally a person that directly or
				  indirectly controls, is controlled by, or is under common control with another
				  person. In addition, for purposes of Article 1 (§ 6.2-1000 et seq.) and
				  Article 2 (§ 6.2-1013 et seq.) of Chapter 10 of Title 6.2 of the Code of
				  Virginia, a broker-dealer, investment advisor, or investment company is an
				  affiliate of a trust company if a trust company holding company controls the
				  trust company and owns, directly or indirectly, 5.0% or more of any class of
				  the capital stock of the broker-dealer, investment advisor, or investment
				  company.
"Affiliated trust company" means a trust company that is
				  controlled by a trust company holding company. For purposes of Articles 1 and 2
				  of Chapter 10 of Title 6.2 of the Code of Virginia, a trust company holding
				  company or other person has control of a trust company or other legal entity if
				  the person owns 25% or more of the voting stock of the trust company or entity;
				  if, pursuant to the definition of control in the Bank Holding Company Act of
				  1956 ( 12 USC § 1841 et seq.), the person would be presumed to control the
				  trust company or entity; or if the commission determines that the person
				  exercises a controlling influence over the management and policies of the trust
				  company or entity.
"Broker-dealer" means any person selling any type of security
				  other than an interest or unit in a condominium as defined in subdivision (c)
				  of § 55-79.2 of the Code of Virginia or cooperative housing corporation
				  for the account of others or for his own account otherwise than with or through
				  a broker-dealer or agent, but does not include a bank, a trust subsidiary
				  formed under Article 3 (§ 6.2-1047 et seq.) of Chapter 10 of Title 6.2 of
				  the Code of Virginia, an issuer or an agent.
"Bureau" means the Bureau of Financial Institutions of the
				  State Corporation Commission.
"Commission" means the State Corporation Commission.
"Trust company" means a corporation, including an affiliated
				  trust company, authorized to engage in the trust business under Article 1
				  (§ 6.2-1000 et seq.) and Article 2 (§ 6.2-1013 et seq.) of Chapter 10
				  of Title 6.2 of the Code of Virginia with powers expressly restricted to the
				  conduct of general trust business.
"Trust company holding company" means a corporation which
				  owns, directly or indirectly, 5.0% or more of any class of capital stock of a
				  broker-dealer, investment advisor, or investment company and which also
				  controls a trust company.
Statutory Authority
§§ 6.2-1034 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-20 - Preliminary statement; responsibility of the board of directors; meetings of the board

Current through Register Vol. 40, No. 24, July 15, 2024
The board of directors of a trust company shall be composed
				  of individuals who are qualified by character and business experience to direct
				  the affairs of a corporate fiduciary. The board shall be responsible for
				  directing the affairs of the company in accordance with general principles of
				  law relating to trusts and fiduciaries, Virginia statutory and common law, and
				  other applicable laws and regulations.
The board of directors shall hold a meeting at least once in
				  each calendar month, unless at the request of a trust company the commission
				  allows, for cause, less frequent meetings. A majority of the board must be
				  present for the lawful transaction of business. However, the stockholders may
				  fix, by bylaw, a number not less than five as a quorum.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-30 - Composition of affiliated trust company board; prohibitions on dual service

Current through Register Vol. 40, No. 24, July 15, 2024
A majority of the board of directors of an affiliated trust
				  company shall consist of members who are neither directors nor officers of any
				  other single affiliate of the trust company.
A director, officer, or employee of a trust company holding
				  company or any affiliate of an affiliated trust company may not serve at the
				  same time as an officer, director, or employee of the trust company, if such
				  individual's employment responsibilities at an affiliate of the trust company
				  include (i) the solicitation, sale or trading of securities; (ii) the selection
				  of portfolio managers; (iii) the performing of investment advisory services;
				  (iv) responsibilities that are functionally equivalent to those listed in (i),
				  (ii), or (iii); or (v) supervision of one or more persons having such
				  responsibilities.
A person who is an agent, broker-dealer, investment advisor,
				  or investment advisor representative shall not serve as an officer or director
				  of a trust company that is not an affiliated trust company.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-40 - Reports of condition; annual audits

Current through Register Vol. 40, No. 24, July 15, 2024
Trust companies and trust company holding companies shall
				  submit to the bureau statements of their financial condition at such times as
				  the bureau may require. Such statements shall be made in accordance with forms
				  prescribed by the bureau, certified under oath, and attested by at least three
				  directors. The bureau shall call upon all such trust companies and trust
				  company holding companies doing business in Virginia to file these statements.
				  The bureau may require any trust company or trust company holding company to
				  prepare and submit such other reports and material as the bureau deems
				  necessary to protect or promote the public interest.
The board of directors of a trust company shall cause to be
				  made an annual audit of the trust company. The audit shall be performed by a
				  qualified, independent auditor. A separate report, containing a management
				  letter, shall be required and submitted to the bureau in a timely
				  manner.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-50 - Insurance required

Current through Register Vol. 40, No. 24, July 15, 2024
In addition to the surety bond required by § 6.2-1016 of
				  the Code of Virginia, a trust company shall maintain insurance coverage that,
				  in kind and amount, provides adequate protection against the risks of the
				  business. The coverage may be provided through the holding company of an
				  affiliated trust company.
Statutory Authority
§§ 6.2-1034 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-60 - Investments

Current through Register Vol. 40, No. 24, July 15, 2024
A trust company may invest its capital funds in the
				  investments permitted by law for state banks; it shall reasonably diversify the
				  investment of such funds.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-70 - Loans to certain persons prohibited

Current through Register Vol. 40, No. 24, July 15, 2024
A trust company shall not make loans or otherwise extend its
				  capital funds to an officer, director, or employee of the trust company, its
				  holding company, and its affiliates.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-80 - Delegation of trust functions; confidentiality

Current through Register Vol. 40, No. 24, July 15, 2024
A trust company, as trustee, is responsible to settlors and
				  beneficiaries of trusts for carrying out the terms of trust agreements. This
				  responsibility remains with the company regardless of any arrangement that may
				  place one or more trust functions (e.g., administration, custody, investment
				  advice, investment management) with a third party. The trust company must
				  retain sufficient control of trust accounts to be able to meet its
				  responsibilities.
In instances where investment discretion, i.e., the authority
				  to determine what securities or other property shall be bought or sold for an
				  account, is delegated to an affiliate of a trust company, the affiliate must be
				  named by the settlor in the trust agreement or other controlling document. The
				  trustee may advise the settlor in selecting such affiliate, and shall review
				  its performance periodically and advise the settlor whether it is in the best
				  interest of the trust to continue the delegation of investment discretion to
				  such affiliate.
A trust company shall preserve the confidentiality of
				  customers' financial information and shall not disclose such information
				  without the consent of the customer.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-90 - Trust administration as individual, receipt of income from licensed activities prohibited

Current through Register Vol. 40, No. 24, July 15, 2024
An officer or employee of a trust company may not accept or
				  administer, as an individual, any trust account, unless the board of directors
				  approves and monitors the arrangement. While employed by a trust company or
				  receiving remuneration therefrom, an officer or employee of a trust company may
				  not engage in a licensed activity and receive commissions, fees, or other
				  similar income from such activity.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-100 - Securities advice prohibited; exception

Current through Register Vol. 40, No. 24, July 15, 2024
An affiliated trust company may not express an opinion as to
				  the advisability of purchasing any security underwritten by an affiliate, or in
				  which any affiliate makes a market, unless the affiliated trust company clearly
				  discloses in writing that the trust company and the underwriting affiliate are
				  under common ownership, that the affiliate is underwriting or dealing in the
				  security, and that the affiliate has a financial interest in the sale of the
				  security, which interest shall be described.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-110 - Agency or marketing activity prohibited

Current through Register Vol. 40, No. 24, July 15, 2024
An affiliated trust company may not act as agent for, or
				  engage in any marketing activity on behalf of, its holding company or any
				  affiliate of the trust company. An affiliated trust company may not distribute
				  any prospectus or other sales literature relating to a particular security, and
				  may not make any such information available at an office of the trust
				  company.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-120 - Services by affiliate

Current through Register Vol. 40, No. 24, July 15, 2024
When a service is provided to a trust account by an affiliate
				  of a trust company, the service must be allowed under the terms of the
				  governing instrument, by a court or by law, and must be justified by readily
				  available documents relating to the specific account.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-130 - Referral of securities transactions

Current through Register Vol. 40, No. 24, July 15, 2024
An affiliated trust company may not direct to an affiliated
				  broker-dealer the compensation-producing securities transactions of a trust
				  account, unless:
1. Such action is
				authorized by the account settlor, the beneficiaries, or a court (depending on
				the circumstances) by specific written consent or authorization obtained after
				disclosure of the relationship and the terms of the arrangement;
2. Use of the affiliated broker-dealer is in
				the best interest of the account;
3. In the case of employee benefit trusts, a
				reasoned opinion of counsel is obtained to the effect that the proposed use
				does not violate the Employee Retirement Income Security Act of 1974 ( 29 USC
				§ 1001 et seq.); and
4. The
				trust company has established adequate safeguards against potential abuses
				(e.g., "churning").
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-140 - Purchases from affiliate prohibited; exceptions; terms

Current through Register Vol. 40, No. 24, July 15, 2024
Section 6.2-1020 of the Code of Virginia provides that an
				  affiliated trust company may not, during the underwriting period, purchase from
				  an affiliated broker-dealer any security that is being underwritten by that
				  broker-dealer.
Outside the scope of § 6.2-1020 of the Code of Virginia,
				  an affiliated trust company may not purchase any security or other property
				  from an affiliate, except as authorized by a provision of a governing trust
				  instrument or other controlling document, by a court, or in accordance with
				  specific permission given by law (e.g., § 26-44.1 of the Code of
				  Virginia). Any such purchase from an affiliate shall be made at arm's length
				  and on terms no less stringent than those that would apply in a transaction
				  with an unrelated third party.
Statutory Authority
§§ 6.2-1034 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 22 - TRUST COMPANY REGULATIONS › Section 10VAC5-22-150 - Separate offices required

Current through Register Vol. 40, No. 24, July 15, 2024
An affiliated trust company shall maintain offices that are
				  separate and clearly distinguishable from the offices of its holding company
				  and every other affiliate of the trust company. If the offices of the trust
				  company are in the same building with those of a broker-dealer affiliate, the
				  trust company's offices shall be on a different floor from the offices of the
				  broker-dealer.
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise:
"Company" means any corporation, partnership, trust, joint
				  stock company, or similar organization.
"Control" means the ownership, control, or power to vote 25%
				  percent or more of the voting shares of a state savings institution or other
				  company, the ability to elect a majority of the directors of such an
				  institution or company, or, as determined by the Commission on the basis of
				  evidence, actual control of the management or policies of such an institution
				  or company.
"Financial institution" means any bank, trust company,
				  savings and loan association, industrial loan association, consumer finance
				  company, or credit union. (§ 6.2-100 of the Code of Virginia.)
"Person" means a company, association, joint venture, pool,
				  syndicate, sole proprietorship, unincorporated association, individual or any
				  other entity not specifically listed.
"Savings institution" means a savings and loan association,
				  building and loan association, building association, or savings bank, whether
				  organized as a capital stock corporation or a nonstock corporation, which is
				  authorized by law to accept deposits and to hold itself out to the public as
				  engaged in the savings institution business.
"Savings institution holding company" means any person that
				  directly or indirectly, or acting in concert with one or more other companies
				  or persons (including one or more subsidiaries or affiliates) controls one or
				  more stock savings institutions, or that controls in any manner the election of
				  a majority of the directors of such an institution.
"State savings institution" means a savings institution
				  granted a certificate of authority pursuant to the laws of the Commonwealth.
				  (The term is identical to "state association " as defined in § 6.2-1100 of
				  the Code of Virginia.)
"State savings institution holding company" means a savings
				  institution holding company that controls one or more state savings
				  institutions, but that is not a "regional savings institution holding company"
				  as defined in § 6.2-1148 of the Code of Virginia.
Statutory Authority
§§ 6.2-1192 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-20 - Scope

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter governs acquisitions intra-state of control of
				  state savings institutions and of state savings institution holding companies,
				  and acquisitions by such holding companies. It governs the examination,
				  supervision and regulation of state savings institution holding companies. This
				  chapter does not apply to any inter-state acquisition authorized by Article 5
				  (§ 6.2-1148 et seq. of the Code of Virginia) of Chapter 11 of Title 6.2,
				  or to the reporting, examination, supervision, and regulation of any regional
				  savings institution holding company resulting from such an inter-state
				  transaction; such matters are governed entirely by Article 5 and by any
				  regulation adopted pursuant thereto.
Statutory Authority
§§ 6.2-1192 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-30 - Requirement of an application

Current through Register Vol. 40, No. 24, July 15, 2024
A. Except as provided in subsection B of this
				Section, no person shall take any action, or consummate any transaction,
				directly or indirectly, or through or in concert with one or more other
				persons, that would result in the creation of a state savings institution
				holding company, and no persons shall acquire control of a state savings
				institution or state savings institution holding company, unless such person
				first (i) files a satisfactorily completed application with the Bureau of
				Financial Institutions using the form prescribed from time to time for such
				purpose; (ii) delivers to the Bureau such other information as the Bureau may
				require, certified or verified as may be deemed appropriate by the Bureau;
				(iii) pays an application fee of $3,000; and (iv) receives prior written
				approval of the action, transaction or acquisition from the
				Commission.
B. In instances in
				which the action to be taken is limited to the formation of a corporation by a
				state savings institution for the purpose of acquiring and holding the stock of
				such state savings institution, and the shareholders of the state savings
				institution will become the shareholders of the resulting state savings
				institution holding company, no application fee shall be required.
C. No state savings institution holding
				company shall acquire control of any additional financial institution, or of
				any other company which is not a financial institution, unless such state
				savings institution holding company first (i) files a satisfactorily completed
				application with the Bureau of Financial Institutions using the form prescribed
				from time to time for such purpose; (ii) delivers to the Bureau such other
				information as the Bureau may require, certified or verified as may be deemed
				appropriate by the Bureau; (iii) pays an application fee of $3,000; and (iv)
				receives prior written approval of the acquisition from the
				Commission.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-40 - Standard for approval

Current through Register Vol. 40, No. 24, July 15, 2024
A. No
				application that involves the acquisition of control of a state savings
				institution or a state savings institution holding company, other than
				applications of the types described in subsections B and C of
				10VAC5-30-30 of this chapter,
				shall be approved unless the Commission determines that:
1. The proposed acquisition would not be
				detrimental to the safety and soundness of the applicant or of the state
				savings institution or state savings institution holding company which the
				applicant seeks to acquire or control;
2. The applicant, its directors and officers
				(if applicable), and any proposed new directors and officers of the state
				savings institution or state savings institution holding company which the
				applicant seeks to control, are qualified by character, experience and
				financial responsibility to control and operate a state savings institution or
				state savings institution holding company;
3. The proposed acquisition would not be
				prejudicial to the interests of the depositors, creditors, beneficiaries of
				fiduciary accounts or shareholders of the state savings institution holding
				company or any state savings institution which the applicant seeks to acquire
				or control; and
4. The acquisition
				is in the public interest.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-50 - The application process

Current through Register Vol. 40, No. 24, July 15, 2024
Upon receiving a satisfactorily completed application, the
				  Bureau will accept it as filed, investigate the proposed transaction, and
				  present the matter to the Commission for action.
In every case the Commission will act within 90 days after an
				  application has been filed, unless such time is extended. The 90-day
				  investigation period may be extended if the Commission determines that the
				  applicant has not furnished all the information necessary to make the
				  determinations required herein or that the information submitted is
				  substantially inaccurate or misleading.
Within the prescribed investigation period (or any extension
				  thereof), and upon request of the applicant or any state savings institution or
				  state savings institution holding company which the applicant seeks to acquire
				  or control, or upon its own motion, the Commission may order a hearing
				  concerning the proposed acquisition. Within the prescribed investigation period
				  (or any extension thereof), the Commission, by giving written notice of its
				  decision and the reasons therefor to the applicant and to the state savings
				  institution or state savings institution holding company which the applicant
				  seeks to acquire or control, may:
(i)
				approve the application,
(ii)
				disapprove the application, or
(iii) impose such conditions on the
				acquisition as the Commission may deem advisable to effect the purposes of this
				section.
The 90-day investigation period may be shortened or waived by
				  the Commission, as it deems appropriate, if the Commission finds that it must
				  act immediately in order to prevent the probable failure of a state savings
				  institution affected by the application.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-60 - Reporting

Current through Register Vol. 40, No. 24, July 15, 2024
Every state savings institution holding company shall report
				  by filing with the Bureau a copy of every report such holding company submits
				  to the appropriate federal authority. Any person that is a state savings
				  institution holding company but that is not subject to a reporting requirement
				  of such a federal authority shall file such reports as the Bureau may
				  direct.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-70 - Books and records

Current through Register Vol. 40, No. 24, July 15, 2024
The Bureau may require every state savings institution
				  holding company to maintain its books and records in such form as the Bureau
				  deems necessary for its determination that every state savings institution
				  subject to the control of such holding company is being operated in a safe and
				  sound manner.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-80 - Examination of holding company

Current through Register Vol. 40, No. 24, July 15, 2024
The Bureau may examine any state savings institution holding
				  company and any subsidiary or affiliate of such a holding company when such
				  examination is deemed necessary or appropriate to the proper supervision of any
				  state savings institution. The cost of any such examination shall be borne by
				  the holding company. Every state savings institution holding company, and every
				  affiliate or subsidiary thereof, shall make available to the Bureau such books
				  and records as the Bureau may require.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 30 - SAVINGS INSTITUTION HOLDING COMPANIES › Section 10VAC5-30-90 - Cease and desist order

Current through Register Vol. 40, No. 24, July 15, 2024
If the Commission finds that any action or activity, current
				  or proposed, of a state savings institution holding company, or of any
				  affiliate or subsidiary thereof, is detrimental to the safety or soundness of
				  any state savings institution, the Commission, after reasonable notice to the
				  holding company and an opportunity for it to be heard, may order the holding
				  company to cease and desist from such action or activity.
Statutory Authority
§ 6.2-1192 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-5 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings unless the context clearly indicates
				  otherwise:
"Credit union service organization" or "CUSO" means a
				  corporation, limited liability company, or limited partnership, the voting
				  shares or ownership interest of which is primarily held, directly or
				  indirectly, by one or more credit unions or organizations of credit
				  unions.
"GAAP" means generally accepted accounting principles.
"Immediate family member" means a spouse or other family
				  member living in the same household.
"Officials" means a credit union's directors or committee
				  members.
"Reserves" means the total of undivided earnings, regular
				  reserves, and any other type of funds held in reserve except allowances for
				  loan losses.
"Senior management employee" means a credit union's chief
				  executive officer (typically the president or treasurer/manager), any assistant
				  chief executive officers (e.g., assistant president, vice president, or
				  assistant treasurer/manager), and the chief financial officer
				  (comptroller).
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of
					 Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-10 - Surety bond amount required

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every credit union incorporated and
				operating under the provisions of Chapter 13 (§ 6.2-1300 et seq.) of Title
				6.2 of the Code of Virginia shall obtain and keep in force a blanket surety
				bond upon all of its officials, committee members and employees in a surety
				company licensed to do business in Virginia in an amount of at least that shown
				in the following schedule based upon its total assets as shown by its latest
				statement of financial condition made to the Commission as of the end of each
				calendar year:
ASSETS
MINIMUM BOND
$0 to $10,000
Coverage equal to the credit union's assets.
$10,001 to $1,000,000
$10,000 for each $100,000 or fraction thereof.
$1,000,001 to $50,000,000
$100,000 plus $50,000 for each million or fraction over
						  $1,000,000.
$50,000,001 to $295,000,000
$2,550,000 plus $10,000 for each million or fraction
						  thereof over $50,000,000.
Over $295,000,000
$5,000,000
B.
				The maximum amount of deductibles allowed are based on the credit union's total
				assets. The following table sets out the maximum deductibles:
ASSETS
MINIMUM DEDUCTIBLE
$0 - $100,000
No deductibles allowed
$100,001 - $250,000
$1,000
$250,001 - $1,000,000
$2,000
Over $1,000,000
$2,000 plus 1/1000 of total assets up to a maximum
						  deductible of $200,000
C.
				No bond obtained pursuant to this chapter may be canceled unless written notice
				thereof is given to the Commissioner of Financial Institutions at least 30 days
				prior to the effective date of such cancellation, and every such bond shall
				contain a provision to that effect.
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-20 - Schedule prescribing annual fees paid for examination, supervision, and regulation of state chartered credit unions

Current through Register Vol. 40, No. 24, July 15, 2024
Pursuant to the requirement of § 6.2-1310 of the Code of
				  Virginia, state-chartered credit unions shall pay annual fees for their
				  examination, supervision and regulation in accordance with the following
				  schedule:
SCHEDULE
Total Assets
FEE
$25,000 or less
$4 per $1,000 but not less than $20
Over $25,000 through $100,000
$100 plus $1.75 per $1,000 for assets in excess of
						  $25,000
Over $100,000 through $1,000,000
$231.25 plus $.75 per $1,000 for assets in excess of
						  $100,000
Over $1,000,000 through $5,000,000
$906.25 plus $.60 per $1,000 for assets in excess of
						  $1,000,000
Over $5,000,000 through $10,000,000
$3,306.25 plus $.30 per $1,000 for assets in excess of
						  $5,000,000
Over $10,000,000
$4,806.25 plus $.20 per $1,000 of assets in excess of
						  $10,000,000
(These fees are to be applied to even $1,000 units, with
				  fractional parts of $1,000 dropped.)
The assessment shall be computed on the basis of the credit
				  union's total assets as shown by its Report of Condition as of the close of
				  business for the preceding year (December 31), as filed with the Bureau of
				  Financial Institutions on or before the first day of
				  February.
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-30 - Regular reserve accounts

Current through Register Vol. 40, No. 24, July 15, 2024
Pursuant to § 6.2-1377 of the Code of Virginia, a state
				  credit union shall establish and maintain a regular reserve account in
				  accordance with applicable provisions of Part 702 of the National Credit Union
				  Administration Rules and Regulations,
				  12 CFR
				  702.1 through
				  702.403, regardless of §
				  6.2-1377 of the Code of Virginia.
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-40 - Serving underserved areas

Current through Register Vol. 40, No. 24, July 15, 2024
Any multiple-group state credit union shall have the power to
				  amend its articles of incorporation or bylaws, pursuant to § 6.2-1323 of
				  the Code of Virginia, to expand its field of membership to include individuals
				  and organizations in one or more underserved areas to the same extent, and
				  subject to the same conditions, as is authorized for federal credit unions
				  under 12 USC § 1759. The numerical limitations contained in §
				  6.2-1327B 2 and the provisions of § 6.2-1328 of the Code of Virginia shall
				  not apply to the exercise of this power.
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-50 - Services for nonmembers within the field of membership

Current through Register Vol. 40, No. 24, July 15, 2024
A state-chartered credit union shall have the power to
				  provide the following services to persons within its field of membership
				  regardless of such persons' membership status:
1. Selling negotiable checks (including
				travelers checks), money orders, and other similar money transfer instruments
				(including international and domestic electronic fund transfers); and
2. Cashing checks and money orders and
				receiving international and domestic electronic fund transfers for a
				fee.
Statutory Authority
§§ 6.2-1303 and 12.1-13 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-60 - Credit union service organizations (CUSOs)

Current through Register Vol. 40, No. 24, July 15, 2024
A.
1.
				Except as otherwise provided in this section, a state-chartered credit union
				shall not, directly or indirectly, invest its funds or make loans pursuant to
				subdivision 10 of § 6.2-1376 of the Code of Virginia.
2. Except as provided in subsection H of this
				section, a CUSO shall not, directly or indirectly, invest any of its funds in a
				corporation, limited liability company, partnership, association, trust, or
				other legal or commercial entity unless the state-chartered credit union or
				credit unions having an interest in the CUSO would be permitted to directly
				invest its funds in such entity and the state-chartered credit union or credit
				unions comply with the notice requirement in subsection B and the other
				provisions of this section.
3.
				CUSOs shall not, directly or indirectly, acquire control of another depository
				institution, nor invest in shares, stocks, or obligations of an insurance
				company, trade association, liquidity facility, or similar organization,
				corporation, or association.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-70 - Low-income designated credit unions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Upon the filing and investigation of a
				written application, the Commissioner of Financial Institutions (commissioner)
				shall designate a state-chartered credit union as a low-income credit union if
				(i) the commissioner finds that a majority of the credit union's members
				qualify as low-income members as defined in 12 CFR 701.34 and(ii) the National
				Credit Union Administration concurs with the designation. If the application
				filed by a credit union is denied, the commissioner shall notify the credit
				union of the denial and the reasons for the denial.
B. A low-income designated credit union shall
				have the following additional powers to the same extent, and subject to the
				same terms and conditions, as is authorized for federal credit unions that have
				obtained a low-income designation pursuant to
				12 CFR
				701.34:
1.
				To accept nonmember deposits in accordance with
				12 CFR
				701.32 and
				12 CFR
				741.204.
2. To accept secondary capital in accordance
				with 12 CFR
				701.34 and
				12 CFR
				741.204.
3. To participate in the Community
				Development Revolving Loan Program in accordance with 12 CFR Part
				705.
4. To be eligible for an
				exception to the aggregate loan limit on member business loans in accordance
				with 12 CFR
				723.17 and
				12 CFR
				723.18.
5. To obtain funds from the Community
				Development Financial Institutions Fund operated by the United States
				Department of the Treasury.
Whenever any of the federal regulations referenced in this
				  subsection require a credit union to submit a written request, plan,
				  application, or other documents to the National Credit Union Administration,
				  the credit union shall send a copy of such written request, plan, application,
				  or other documents to the commissioner.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-80 - Loan participations

Current through Register Vol. 40, No. 24, July 15, 2024
Notwithstanding any provision of Chapter 13 (§ 6.2-1300
				  et seq.) of Title 6.2 of the Code of Virginia relating to loan participations
				  or cooperative loans, a state-chartered credit union may purchase a
				  participation interest in a loan to the same extent, and subject to the same
				  terms and conditions, as is authorized for federal credit unions under
				  12 CFR
				  701.22.
Statutory Authority: §§ 6.2-1303 and 12.1-13 of
					 the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 40 - CREDIT UNIONS › Section 10VAC5-40-90 - Benefits for employees of state-chartered credit unions

Current through Register Vol. 40, No. 24, July 15, 2024
A. A state-chartered credit union may provide
				employee benefits, including retirement benefits, to its employees and
				officers. The kind and amount of these benefits shall be reasonable given the
				credit union's size, financial condition, and the duties of the
				employees.
B. When a
				state-chartered credit union is the benefit plan trustee or custodian, the plan
				shall be authorized and maintained to the same extent, and subject to the same
				terms and conditions, as is authorized for federal credit unions under 12 CFR
				Part 724. When the benefit plan trustee or custodian is a party other than a
				state-chartered credit union, the benefit plan shall be maintained in
				accordance with applicable laws, including any applicable regulations adopted
				by the U.S. Department of Labor, the U.S. Department of the Treasury, or any
				other federal or state authority exercising jurisdiction over the
				plan.
C. Notwithstanding the
				investment limitations set forth in § 6.2-1376 of the Code of Virginia, a
				state-chartered credit union investing to fund an obligation under an employee
				benefit plan, as defined in 29 USC § 1002(3), may purchase an investment
				if (i) the investment is directly related to the credit union's obligation or
				potential obligation under the employee benefit plan and (ii) the credit union
				holds the investment only for as long as it has an actual or potential
				obligation under the employee benefit plan.
D. A state-chartered credit union may invest
				to fund a defined benefit plan, as defined in 29 USC § 1002(35), provided
				that the investment complies with subsection C of this section. If a credit
				union invests to fund a defined benefit plan that is not subject to the
				fiduciary responsibility provisions of Part 4 of the Employee Retirement Income
				Security Act of 1974 (ERISA), 29 USC § 1001 et seq., it shall diversify
				its investment portfolio to minimize the risk of large losses unless it is
				clearly prudent not to do so under the circumstances.
E. A state-chartered credit union shall not
				occupy the position of a fiduciary, as defined in ERISA and the regulations
				adopted by the U.S. Department of Labor.
Statutory Authority: §§ 6.2-1303 and 12.1-13 of
					 the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 50 - INDUSTRIAL LOAN ASSOCIATIONS › Section 10VAC5-50-10 - Disclosure on debt instruments; minimum amount and maturity

Current through Register Vol. 40, No. 24, July 15, 2024
No bond, debenture, or other evidence of debt, however
				  described, shall be offered, nor shall any such instrument be issued for offer
				  to the general public by advertisement or solicitation, unless such instrument
				  states on its face in a prominent manner the words:
"This instrument is not a deposit. It is not insured or
				  guaranteed by any governmental agency or private insurance company."
No such evidence of debt shall mature less than one year from
				  its issuance, nor shall any such instrument be issued for an amount less than
				  $1,000.
Statutory Authority
§ 6.2-1404 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 50 - INDUSTRIAL LOAN ASSOCIATIONS › Section 10VAC5-50-20 - Surety bond upon all active officers

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every industrial loan association as
				defined in Chapter 14 (§ 6.2-1400 et seq.) of Title 6.2 of the Code of
				Virginia shall obtain and keep in force upon all its active officers a bond or
				bonds in a surety company authorized to do business in this Commonwealth in the
				penalty of whatever amount is deemed appropriate by its board of
				directors.
B. No bond given
				pursuant to this section may be cancelled without first giving the Commissioner
				of Financial Institutions 10 days written notice of such cancellation, and
				every such bond shall contain a provision to that effect.
Statutory Authority
§ 6.2-1404 of the Code of Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 50 - INDUSTRIAL LOAN ASSOCIATIONS › Section 10VAC5-50-30 - Schedule prescribing annual fees paid for examination, supervision, and regulation of industrial loan associations

Current through Register Vol. 40, No. 24, July 15, 2024
Pursuant to the provision of § 6.2-1414 of the Code of
				  Virginia, the State Corporation Commission hereby promulgates the following
				  schedule prescribing the annual fee to be paid by every industrial loan
				  association for its supervision and regulation, as follows:
SCHEDULE
Asset Interval
Fee
Assets Exceeding
But Not Exceeding
Pay This Amount
Plus
Assets Exceeding
$0
$2 million
$1,200
0
2 million
5 million
1,200
.000900
x
$2 million
5 million
25 million
3,900
.000120
x
5 million
25 million
6,300
.000060
x
25 million
The assessment calculation shall be rounded down to the
				  nearest whole dollar amount. The assessment shall be computed on the basis of
				  the association's total assets as shown by its last Consolidated Report of
				  Condition made as of the close of business for the preceding calendar year as
				  filed with the Bureau of Financial Institutions.
Statutory Authority
§ 6.2-1404 of the Code of
					 Virginia.
Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 60 - CONSUMER FINANCE COMPANIES › Section 10VAC5-60-5 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
A. The following
				words and terms when used in this chapter shall have the following meanings
				unless the context clearly indicates otherwise:
"Act" means Chapter 15 (§
										6.2-1500
				  et seq.) of Title 6.2 of the Code of Virginia.
"Advertisement" means a commercial message in any medium that
				  promotes, directly or indirectly, a consumer finance loan. The term includes a
				  communication sent to a consumer as part of a solicitation of business but
				  excludes messages on promotional items such as pens, pencils, notepads, hats,
				  and calendars.
"Consumer finance loan" means a loan made to an individual
				  for personal, family, household, or other nonbusiness purposes.
"Liquid assets," for purposes of the Act and this chapter,
				  means funds held in a checking account or savings account at a depository
				  institution, money market funds, commercial paper, and treasury bills.
B. Other terms used in this
				chapter shall have the meanings set forth in §
									6.2-100 or
				6.2-1500
				of the Code of Virginia.
Statutory Authority: §§
											6.2-1535
					 and
					 12.1-13
					 of the Code of Virginia.