6.1-32.8 - (Repealed effective October 1, 2010) Deposits of funds held or received by trust subsidiaries or subsidiary bank with affiliate banks; security therefor.
§ 6.1-32.8. (Repealed effective October 1, 2010) Deposits of funds held orreceived by trust subsidiaries or subsidiary bank with affiliate banks;security therefor.
Funds received or held by such trust subsidiary or subsidiary bank whileawaiting investment or distribution shall not be used by an affiliate bank orowning bank in the conduct of its business or deposited in such bank, unlessthe bank first delivers to its trust department or to the trust subsidiary orsubsidiary bank, as collateral security therefor, securities as defined in §6.1-21 in an amount described below.
The securities so deposited as collateral shall be owned by the bank andshall at all times be at least equal in market value to the amount of trustfunds held on deposit by such trust subsidiary or subsidiary bank, less suchamount thereof as shall be insured by the Federal Deposit InsuranceCorporation.
In the event of the failure or liquidation of such bank, the trust subsidiaryor subsidiary bank and the owners of the beneficial interest in such trustfunds shall have a lien on the bonds or other securities so set apart inaddition to their claims against the estate of the bank.
(1974, c. 286; 1991, c. 282.)