6.1-32.9 - (Repealed effective October 1, 2010) Substitution of trust subsidiary or subsidiary bank under common ownership as fiduciary.
§ 6.1-32.9. (Repealed effective October 1, 2010) Substitution of trustsubsidiary or subsidiary bank under common ownership as fiduciary.
A. Upon the grant to a trust subsidiary of permission to engage in the trustbusiness, the trust subsidiary may file an application in the circuit courtof the jurisdiction in which its main office is located requesting that it besubstituted, except as may be excluded in such application, in everyfiduciary capacity for each of its owning banks, or in the case of a Virginiabank holding company for any one or more of its affiliate banks specified inthe application. Upon a finding that (i) the trust subsidiary has beengranted permission to engage in the trust business by the State CorporationCommission or the Comptroller of the Currency if the trust subsidiary is anational banking association, the main office of which is in Virginia, and(ii) the requirements of § 6.1-32.7 have been met, the court shall enter anorder substituting the trust subsidiary in every fiduciary capacity for eachof its specified affiliate banks, or specified owning banks, except as may beotherwise specified in the application. Upon entry of such order, the trustsubsidiary shall, without further act, be substituted in every fiduciarycapacity, and such substitution shall be evidenced by filing a copy of theorder with the clerk of any circuit court in the Commonwealth. Such ordershall be indexed in each index in the records of such court in whichsubstitutions of fiduciaries are otherwise indexed. Such application may bemade ex parte and need not list the fiduciary capacities in whichsubstitution is made. If the requirements of § 6.1-32.7 have been met, theorder of substitution shall specify that the trust subsidiary shall be deemedwithout further act to have given bond with open penalty with respect to eachfiduciary capacity in which there is substitution.
B. Upon the grant to a subsidiary bank of permission to engage in the trustbusiness, such subsidiary bank may file an application in the circuit courtof the jurisdiction in which its main office is located, requesting that itbe substituted, except as may be specified in such application, in everyfiduciary capacity for a bank under common ownership. Upon a finding that (i)the subsidiary bank has been granted such permission to engage in the trustbusiness by the State Corporation Commission or the Comptroller of theCurrency, and (ii) the unimpaired capital and surplus of such subsidiary bankis sufficient as prescribed in § 6.1-18, or bond with corporate surety hasbeen posted for any excess, or has been validly waived, the court shall enteran order substituting the subsidiary bank in every fiduciary capacity foreach of the specified banks under common ownership, except as may beotherwise specified in the application. Upon entry of such order, suchsubsidiary bank shall, without further act, be substituted in every suchfiduciary capacity and such substitution shall be evidenced by filing a copyof the order with the clerk of any circuit court in the Commonwealth. Suchorder shall be indexed in each index in the records of such court in whichsubstitutions of fiduciaries are otherwise indexed. Such application may bemade ex parte and need not list the fiduciary capacities in whichsubstitution is made. If a bank under common ownership with the subsidiarybank shall already have qualified in any fiduciary capacity and given bond,without surety, then if the order of substitution shall so provide, but onlywith the consent of the fiduciary for which there is to be substitution, thepredecessor fiduciary shall remain liable on its bond for the acts of itsnamed successor, and no security or corporate surety shall be required of thesuccessor fiduciary on its bond.
C. Any bond, with corporate surety, posted under subsection A or B of thissection or under § 6.1-32.7 may be a blanket bond conditioned as otherwisecontemplated by law.
D. Each designation in a will or other instrument heretofore or hereafterexecuted of a bank as fiduciary shall be deemed a designation of the trustsubsidiary or subsidiary bank under common ownership substituted for suchbank pursuant to this section except when the instrument is executed aftersuch substitution and expressly negates the application of this section andexcept that no waiver of surety with respect to any fiduciary bond shall beeffective, except in such case when the bond would be otherwise sufficient ascontemplated by § 6.1-32.7 or subsection B of this section. Any grant insuch an instrument of any discretionary power shall be deemed conferred uponthe fiduciary deemed to have been nominated hereunder.
E. A bank shall account jointly with the trust subsidiary or subsidiary bankwhich has been substituted as fiduciary for such bank pursuant to thissection for the accounting period during which the trust subsidiary orsubsidiary bank is initially so substituted. Upon substitution pursuant tothis section, the bank shall deliver to the trust subsidiary or to thesubstituted subsidiary bank under common ownership all assets held by thebank as fiduciary (except assets held for accounts to which there has been nosubstitution), and upon such substitution all such assets shall become theproperty of the trust subsidiary or subsidiary bank as fiduciary without thenecessity of any instrument of transfer or conveyance.
(1974, c. 286; 1987, c. 352; 1991, c. 282.)