6.2-1118 - (Effective October 1, 2010) Certificate of authority to do business.
§ 6.2-1118. (Effective October 1, 2010) Certificate of authority to dobusiness.
A. Before any state savings institution may begin business in theCommonwealth, it shall obtain from the Commission a certificate of authorityto do so. Prior to issuing a certificate, the Commission shall ascertain that:
1. All applicable provisions of law have been complied with;
2. If a mutual association, deposits in a total amount deemed by theCommission to be sufficient to warrant successful operation but not less than$2 million, have been pledged or deposited and that such deposits shall notbe withdrawable for at least one year;
3. If a stock association, that financially responsible persons havesubscribed for capital stock and surplus in an amount deemed by theCommission to be sufficient to warrant successful operation, provided thatthe capital stock shall have a paid-in value of not less than $2 million;
4. If a mutual savings bank, deposits in such amount as the Commission deemsnecessary for safe and sound operation, but not less than $1 million havebeen pledged or deposited and that such deposits are not subject towithdrawal for at least one year;
5. If a stock savings bank, that financially responsible persons havesubscribed for capital stock in an amount deemed by the Commission to besufficient to warrant successful operation, provided that the capital stockshall have a paid-in value of not less than $1 million;
6. Regulations governing directors of the association have been complied with;
7. The public interest will be served by the addition of the proposed savingsinstitution facilities in the community where the savings institution is tobe located. The addition of such facilities shall be deemed in the publicinterest if, based on all relevant evidence and information, advantages suchas increased competition, additional convenience, or gains in efficiencyoutweigh possible adverse effects such as diminished or unfair competition,undue concentration of resources, conflicts of interests, or unsafe orunsound practices;
8. The officers and directors of the proposed savings institution demonstrate(i) moral fitness, (ii) financial responsibility, and (iii) business ability;and
9. The applicant has submitted evidence of (i) being fully insured by theFederal Deposit Insurance Corporation or other federal insurance agency or(ii) commitment by the Federal Deposit Insurance Corporation or other federalinsurance agency that the applicant will be issued insurance of accountsimmediately subsequent to the issuance of the certificate of authority. TheCommission may issue a certificate conditioned upon the fact that the savingsinstitution shall not commence to do business until it is issued insurance ofaccounts by the Federal Deposit Insurance Corporation or other federalinsurance agency.
B. The minimum capital stock requirement under:
1. Subdivisions A 2 and A 3 shall apply when a state association is beingorganized to begin business and shall not apply when this section is referredto or used in connection with the conversion of an operating savingsinstitution or bank to a state association, or when this section is used inconnection with the reorganization of an operating state association under aholding company; and
2. Subdivisions A 4 and A 5 shall apply when a state savings bank is beingorganized to begin business and shall not apply when this section is referredto or used in connection with the conversion of an operating savingsinstitution or bank to a state savings bank, or when this section is used inconnection with the reorganization of an operating state savings bank under aholding company.
(Code 1950, § 6-201.40; 1960, c. 402; 1966, c. 584, § 6.1-170; 1972, c. 796,§ 6.1-195.47; 1973, c. 156; 1976, c. 658; 1979, c. 165; 1985, c. 425, §6.1-194.12; 1986, c. 500; 1990, c. 3; 1991, c. 230, § 6.1-194.114; 1992, c.460; 1996, c. 26; 1999, c. 95; 2010, c. 794.)