Chap. 141.—An ACT to amend and re-enact section 4163 of the Code of
Virginia, as heretofore amended by an act approved March 24, 1922.
[S B 116]

Approved March 12, 1926.

1. Be it enacted by the general assembly of Virginia, That sec-
tion forty-one hundred and sixty-three of the Code of Virginia, as
heretofore amended by an act approved March twenty-fourth, nine-
teen hundred and twenty-two, be amended and re-enacted so as to
read as follows:

Section 4163. Supervision by the State corporation commission ;
examination by the chief examiner of banks or his assistants; assess-
ment of fees to cover cost of supervision; financial statements to be
furnished the State corporation commission; publication of financial
statements when required.—(a) The State corporation commission
shall have supervision over all building and loan associations doing
any business in this State, whether incorporated under the laws of
this State or not. The chief examiner of banks shall, not less than
twice in each and every year, and at such other times as in his discre-
tion he may deem necessary, examine or cause to be examined each and
every building and loan association doing business in this State,
whether incorporated under the laws of this State or not. For the
purpose of defraying expenses of such supervision and examination
the State corporation commission shall, on the first day of July of
each and every year, assess every building and loan association doing
business in this State, whether incorporated under the laws of this
State or not, fees not in excess of the fees assessed against incorporated
State banks under the provisions of section forty-one hundred and
twenty-two of the Code of Virginia, as amended by an act approved
March twenty-fifth, nineteen hundred and twenty. The provisions
of section forty-one hundred and twenty-two of the Code of Virginia, as
amended, except as to amount of fees, are hereby made applicable in all
respects to all building and loan associations doing business in this
State, whether incorporated under the laws of this State or not. All
building and loan associations doing business in this State whether in-
corporated under the laws of this State or not, shall furnish the State
corporation commission at such times as it shall require statements
of their financial condition on forms supplied by the chief examiner of
banks, and whenever required so to do by the chief examiner of
banks, such statements shall be published in the same manner that
financial statements of incorporated State banks are now published
under the provisions of section forty-one hundred and twenty of the
Code of Virginia, as amended. But in the event that any building
and loan association doing business in this State shall not desire to be
examined under the provisions of this act then such association shall
so inform the chief bank examiner on or before June thirtieth of each
and every year and thereupon said association shall not be required
to pay such fees and shall not be liable to such examination, unless
the chief bank examiner has information which may reasonably cause
him to believe that such association is accepting deposits from the
public and that such deposits are jeopardized by the condition of
such association. If the chief bank examiner shall have such infor-
mation then he shall have the same powers of examination as he would
have had if such notice had not been given.

(b) In making such examinations as are required under the pro-
visions of this section, the officers, directors and employees of such
building and loan association shall, upon the demand of the person or
officer designated to make such examination, give to the examiner
full access to all money, books, papers, notes, bills and other evidences
of debt to said association, and shall also disclose fully and truly all
indebtedness and liability thereof, and shall furnish said examiner
with all information which he may deem necessary to a full investi-
gation into the affairs of such association; and the said examiner shall
have the right to examine under oath, any and all of the directors,
officers, clerks and employees of such association touching any matter
or thing connected with the operation of such association, and for
that purpose shall have authority to administer oaths to the persons
examined, and shall, in addition, have the right to require the build-
ing and loan association to furnish to him a mathematical calculation
or chart showing in detail the plan of the operation or investment
carried on, for the purpose of determining whether the same is finan-
cially and mathematically sound, and the contracts or obligations
issued or assumed possible of fulfillment.

(c) If upon the examination of any such building and loan asso-
ciation the State corporation commission shall ascertain that the
laws of this State are not being fully observed, or that any irregulari-
ties are being practiced, or that the capital stock of such association
has been, or is in danger of being impaired or that the business is in
the hands of dishonest or unreliable persons, or that the interests of
the public are not being properly protected, the State corporation
commission may close the doors of such building and loan association
and apply to the proper court for the appointment of a receiver to wind
up the affairs of such association.

For the purposes of this act, corporations or persons, whether or
not acting under a declaration of trust or other agreement, or whether
styling themselves as ‘‘home companies’’-or by other title, who shall
directly or indirectly receive single payments, instalment payments,
or contributions to be held or used in any plan of accumulation or in-
vestment, or of issuing, negotiating, offering for sale, or selling any
contract, on the partial payment or instalment plan, or single pay-
ment plan, under which all or a part of the total amount received is to
be repaid as a loan or otherwise, are to be deemed to be building and
loan associations and subject to all of the provisions hereof. And any
foreign corporation or non-resident person, whether or not acting
under a declaration of trust or other agreement, who by themselves
or their agents, shall do within this State any of the acts set forth in
this paragraph shall, when the State corporation commission deems it
proper, defray the costs of an examination of the affairs and assets
of such corporation or person, to be made at the chief or other office
thereof; in the event of a failure on the part of such corporation or
person to comply with the laws of this State or that such examina-
tion shall disclose any of the irregularities set forth in paragraph (c)
of this section, then in addition to the application for a receiver an
order shall be entered by the State corporation commission barring
such corporation or person from doing business, or attempting by
agents or otherwise, to do business in this State, but making proper
provision for safeguarding the rights of.all persons in interest; any
person or agent doing or attempting to do business in violation of
such order shall be guilty of a misdemeanor; from such order any
party in interest may have an appeal as provided by law for appeals
from the decisions of the State corporation commission.