6.2-816 - (Effective October 1, 2010) Banks to obtain certificate of authority.

§ 6.2-816. (Effective October 1, 2010) Banks to obtain certificate ofauthority.

Before any bank shall begin business it shall obtain from the Commission acertificate of authority authorizing it to do so. Prior to the issuance ofsuch certificate, the Commission shall ascertain:

1. That all of the provisions of law have been complied with;

2. That financially responsible individuals have subscribed for capital stockand surplus in an amount deemed by the Commission to be sufficient to warrantsuccessful operation. The amount of capital stock shall not be less than $2million, except that the capital stock shall not be less than $500,000 forany trust company incorporated for the sole purpose of exercising fiduciarypowers authorized by the provisions of Article 3 (§ 6.2-819 et seq.) of thischapter. The minimum capital stock requirement under this subdivision (i)shall apply when a bank is being organized to begin business and (ii) shallnot apply when this section is referred to or used in connection with theconversion of an operating savings institution or national bank to a statebank or the reorganization of an operating bank under a holding company;

3. That oaths of all the directors have been taken and filed in accordancewith the provisions of § 6.2-863;

4. That, in its opinion, the public interest will be served by bankingfacilities or additional banking facilities, as the case may be, in thecommunity where the bank is proposed. The addition of such facilities shallbe deemed in the public interest if, based on all relevant evidence andinformation, advantages such as, but not limited to, increased competition,additional convenience, or gains in efficiency outweigh possible adverseeffects such as, but not limited to, diminished or unfair competition, undueconcentration of resources, conflicts of interests, or unsafe or unsoundpractices;

5. That the corporation is formed for no other reason than a legitimatebanking business;

6. That the moral fitness, financial responsibility, and businessqualifications of individuals named as officers and directors of the proposedbank are sufficient to command the confidence of the community where the bankis proposed;

7. That the bank's deposits are to be insured by a federal agency up to thelimits of the insurance provided thereby; and

8. Anything else deemed pertinent.

(Code 1950, § 6-31; 1966, c. 584, § 6.1-13; 1973, c. 454; 1976, c. 658; 1979,c. 57; 1983, c. 193; 1989, c. 751; 1989, Sp. Sess., cc. 4, 7; 1992, c. 460;1996, c. 26; 1998, c. 18; 2010, c. 794.)