6.1-57 - (Repealed effective October 1, 2010) Limitation of amount invested in bank building, etc.
§ 6.1-57. (Repealed effective October 1, 2010) Limitation of amount investedin bank building, etc.
No bank, without the approval of the Commission, shall invest in its bankbuilding and premises, or property held for future accommodation, or in stockor other obligations of any corporation holding title to premises of thebank, if the aggregate of such investments and loans, together with theamount of any indebtedness of such corporation, 50 percent or more of whosestock is owned by the bank, will exceed 50 percent of the capital stock,surplus and undivided profits of the bank, or 100 percent of the capitalstock of the bank, whichever is greater. If, subsequent to any investment orloan, the surplus or undivided profits of any such bank be diminished bylosses so that such investments or loans shall amount to more than 50 percentof its paid-in capital stock and its remaining surplus and undivided profits,or 100 percent of the capital stock, whichever is greater, such bank shallnot pay dividends without the permission of the Commission until suchinvestment or loans shall be equal to or less than 50 percent of the capitalstock, surplus, and undivided profits, or 100 percent of the capital stock ofthe bank, whichever is greater.
In computing the bank's investment in depreciable property, the initial priceor cost may be reduced by reasonable depreciation.
The Commission shall not in any event approve investments and loans in excessof the foregoing if the aggregate amount thereof would exceed 60 percent ofthe bank's capital stock, surplus and undivided profits. The Commission inapproving such excess investments may impose, as a condition of suchapproval, restrictions upon dividends or other restrictions upon the bank,which restrictions shall expire automatically when the investment of the bankin building premises shall no longer exceed 50 percent of the capital stock,surplus and undivided profits of the bank, or 100 percent of the capitalstock, whichever is greater.
(Code 1950, § 6-49; 1966, c. 584; 1968, c. 61.)