6.1-6.1 - (Repealed effective October 1, 2010) Bankers' bank; formation; applicability of banking code.
§ 6.1-6.1. (Repealed effective October 1, 2010) Bankers' bank; formation;applicability of banking code.
A. A bank may be incorporated as provided in § 6.1-6 for the purpose ofbecoming a bankers' bank. A bankers' bank is a bank whose shares shall beowned exclusively by either (i) a financial institution which has or iseligible for insurance of deposits by a federal agency or (ii) a financialinstitution holding company as defined in § 6.1-381 or a savings institutionholding company as defined in § 6.1-194.87 owning any such aforementionedentity. No such financial institution or holding company may own directly orindirectly more than five percent of the issued and outstanding voting sharesof any bankers' bank.
B. Except as specifically provided in this section or by regulation or orderof the Commission, a bankers' bank shall be vested with all of the powers andsubject to all of the restrictions imposed upon a bank.
C. Notwithstanding any other provision in this title to the contrary, abankers' bank shall only accept deposits from or make loans to (i) afinancial institution which has or is eligible for insurance of deposits by afederal agency, (ii) a bank in organization that has applied for insurance ofdeposits by a federal agency, (iii) a financial institution holding companyas defined in § 6.1-381 or a savings institution holding company as definedin § 6.1-194.87 owning any such aforementioned entity, (iv) the officers,directors and employees of any such financial institution, bank inorganization or holding company, (v) any person referred to a banker's bankby a financial institution or by a bank in organization that has applied forinsurance of deposits by a federal agency, or (vi), with the prior approvalof the Commissioner of Financial Institutions and subject to such conditionsas the Commissioner may impose, other persons.
D. A bankers' bank may form a bank holding company upon compliance with theprovisions of Chapter 13 (§ 6.1-381 et seq.) of this title and any applicablefederal law.
E. A bankers' bank may purchase investments or securities of governments orprivate corporations which are traded on the open market such as areauthorized to any other bank organized under the provisions of this chapter.
(1989, c. 650; 1996, c. 218; 2006, c. 633.)