6.2-705 - (Effective October 1, 2010) Investigation of application.
§ 6.2-705. (Effective October 1, 2010) Investigation of application.
A. For 60 days following receipt of a complete application with the requiredinformation, fee, and consent as provided in subsection A of § 6.2-704, theCommission may conduct an investigation for the purpose of determiningwhether:
1. The proposed acquisition would be detrimental to the safety and soundnessof the applicant or of the Virginia financial institution or Virginiafinancial institution holding company that the applicant seeks to control orthe stock of which is to be acquired;
2. The applicant, its directors and officers, if applicable, and any proposednew directors and officers of the Virginia financial institution or Virginiafinancial institution holding company that the applicant seeks to control orthe stock of which is to be acquired, are qualified by character, experience,and financial responsibility to control and operate a Virginia financialinstitution;
3. The proposed acquisition would be prejudicial to the interests of thedepositors, creditors, beneficiaries of fiduciary accounts, or shareholdersof the applicant or of the Virginia financial institution holding company orany Virginia financial institution that the applicant seeks to control or thestock of which is to be acquired; and
4. The acquisition is in the public interest.
B. The 60-day investigation period may be:
1. Shortened or waived by the Commission, as it deems appropriate, if theCommission finds that it must act immediately in order to prevent theprobable failure of a Virginia financial institution involved; or
2. Extended only if the Commission determines that the applicant has notfurnished all the information required by subsection A of § 6.2-704 or thatthe information submitted is substantially inaccurate or misleading.
C. Within the prescribed investigation period, and upon request of theapplicant or the Virginia financial institution or Virginia financialinstitution holding company that the applicant seeks to control or the stockof which is to be acquired, the Commission may order a hearing concerning theproposed acquisition.
D. Within the prescribed investigation period, the Commission, by givingwritten notice of its decision and the reasons therefor to the applicant andto the Virginia financial institution or Virginia financial institutionholding company that the applicant seeks to control or the stock of which isto be acquired, may (i) disapprove the application or (ii) impose suchconditions on the acquisition as the Commission may deem advisable toeffectuate the purposes of this chapter.
E. If the Commission (i) takes no action within the prescribed investigationperiod or (ii) issues notice within the prescribed investigation period ofits intent not to disapprove the application, the acquisition may becompleted by the applicant.
F. Any party in interest aggrieved by any decision of the Commission, as amatter of right, may appeal to the Supreme Court of Virginia in the mannerprovided by law.
G. The provisions of this section shall not apply:
1. To mergers or acquisitions of assets authorized by the Commission pursuantto the provisions of § 6.2-914;
2. If the acquisition or merger is arranged by the Commission or othersupervisory authority in order to prevent the insolvency or closing of theinstitution; or
3. If a financial institution itself forms a corporation for the purpose ofacquiring and holding the stock of such financial institution and it isproposed that the shareholders of the financial institution will become theshareholders of the financial institution holding company being organized.This exclusion shall apply regardless of the fact that some shareholders ofthe financial institution may dissent from the proposal.
(1978, c. 683, § 6.1-387; 1983, c. 194; 1984, c. 335; 2010, c. 794.)