6.2-862 - (Effective October 1, 2010) Directors to own stock in bank.
§ 6.2-862. (Effective October 1, 2010) Directors to own stock in bank.
A. As used in this section, "bank holding company" means (i) a bank holdingcompany as defined in § 6.2-800 or (ii) any corporation organized under thelaws of the Commonwealth and doing business in the Commonwealth that owns allof the capital stock of one bank, except those shares issued as directors'qualifying shares, and at least 66 and two-thirds percent of the assets ofthe holding company, computed on a consolidated basis, consists of assetsheld by such bank and controlled subsidiaries of such bank.
B. Every director of a bank incorporated under the laws of the Commonwealthshall be the sole owner of, and have in his personal possession or control,shares of stock in such bank having a book value of not less than $5,000,calculated as of the last business day of the calendar year immediatelypreceding the election of the director. So long as a director shallsuccessively be reelected, there shall be no requirement to increase theshares of stock owned according to this section. Such stock shall beunpledged and unencumbered at the time such director becomes a director andduring the whole of his term as such.
C. When a bank is controlled by a bank holding company, a director may complywith the requirements of subsection B for each bank of which he is a directorby ownership, in similar manner, of shares of capital stock of the bankholding company having an aggregate book value equal to the book value ofshares of bank stock that he would be obligated to own under subsection B.
D. A director of a bankers' bank shall not be required to own or control anyshares of stock of such bankers' bank or any shares of stock of a bankholding company that controls such bankers' bank.
E. Any director violating the provisions of this section shall, immediately,vacate his office.
F. The requirements of this section shall not apply to any person dulyelected a director of a bank prior to July 1, 1995, or so long as such personshall successively be reelected a director, and as to such person therequirements of the law prior to such date shall apply.
(Code 1950, § 6-37; 1966, c. 584, § 6.1-47; 1970, c. 95; 1995, c. 63; 1996,cc. 25, 218; 2010, c. 794.)