Chap. 232.—An ACT to amend and re-enact section 53 of an act entitled an act
to revise, collate and codify into one act the general statutes of the Common-
wealth, relating to banks and banking, known as the Virginia banking act,
which was amended by an act approved March 24, 1930. [H B 100]

Approved March Z3, 1932

1. Beit enacted by the general assembly of Virginia. That section
fifty-three of an act entitled an act to revise, collate and codify into one
act the general statutes of the Commonwealth, relating to banks and
banking, known as the Virginia banking act, which was amended by an
act approved March twenty-fourth, nineteen hundred and thirty, be
amended and re-enacted so as to read as follows:

Section 53. Every bank, as hereinbefore defined in section one of
this act, shall make to the State corporation commission, statements of
its financial condition at such times as the national banks organized
under the laws of the United States are required to make their state-
ments to the comptroller of the currency and at such other times as the
State corporation commission may deem necessary; and also within
fifteen days after such call publish such statements in condensed form
in some newspaper printed in the county, city or town where such
banking business is carried on, or where the principal office of such
bank is located; and if there is no such paper published in the county,
city or town, then such statements shall be published in the newspaper
published in the county, city or town nearest thereto. The statement
shall be made and published in accordance with forms prescribed by
the State corporation commission certified under oath by the president
or cashier of the bank, or, if there is no cashier, by the treasurer, and
attested by at least three of its directors. It shall be the duty of the
State corporation commission to call upon all such banks doing busi-
ness in Virginia for the statements hereinbefore mentioned, and at the
time prescribed, and to have prepared such forms as may be necessary
to carry out the provisions of this section. Whenever calls for state-
ments are made by the State corporation commission, it shall forward to
each such bank two blank forms, one of which, after being properly
filled out and certified, as hereinbefore required, shall be returned to
the State corporation commission within fifteen days next succeeding
the date of such call, and the other filled out in like manner, shall be
filed with the records of said bank.

The State corporation commission shall, not less than twice in each
and every year, and at such other times as they may deem necessary,
cause to be examined each and every bank doing business in this State.

Said State corporation commission shall also upon written applica-
tion made to them by the board of directors or by the stockholders
representing two-fifths of the total outstanding capital stock of any
such bank doing business in this State, or whenever, in the judgment
of the State corporation commission, it may be necessary for the pro-
tection of the public or of persons depositing or dealing with such
bank, cause to be made a special examination of such bank. All ex-
penses incident to such special examination shall be borne by the bank
so examined. In making such examination, as required by this section,
the officers, directors and employees of such banks shall, upon the
demand of the person or officer designated to make such examination,
give to such examiner full access to all the money, books, paper, notes,
bills and other evidences of debt due said bank and shall also disclose
fully and truly all indebtedness and liability thereof, and shall furnish
him with all information which he may deem necessary to a full in-
vestigation into the affairs of said bank, and said examiner shall have
the right to examine, under oath, any and all of the directors, officers,
clerks and employees in any manner connected with the operation of
any such bank touching any matter or thing pertaining to said examina-
tion, and for that purpose shall have authority to administer oaths to
them. No previous notice of any examination shall be given such bank
or any of its directors, officers, or employees.

When any bank is examined, as herein provided, a copy of the re-
port of such examination shall for a period of sixty days after com-
pletion thereof be open to the inspection of the officers and directors
of the bank examined ; upon resolution of the board of directors of the
said bank, such report may at any time during such period be inspected
by the officers and directors of any other bank, designated in the said
resolution. ,

If upon the examination of any bank, the State corporation com-
mission shall ascertain that the banking laws of this State are not
being fully observed, or that any irregularities are being practiced, or
that its capital has been or is in danger of being impaired, the said
commission shall give immediate notice thereof to the officers and
directors of such banks and if deemed necessary in order to conserve
the assets of such bank or to protect the interests of depositors and
creditors thereof, the commission may exercise any or all of the fol-
lowing powers: (1) temporarily suspend the right of such bank to
receive any further deposits; (2) temporarily close such bank, for a
period not exceeding sixty days, which period may be further extended
for a like period or periods as the commission may deem necessary ;
(3) require the officers and directors of such bank to liquidate in so
far as shall be required its outstanding loans; (4) require that the
impairment of the capital stock shall be made good; (5) require that
the said irregularities shall be promptly corrected; (6) require such
bank to make reports daily or at such other times as may be required
to the commission as to the results achieved in carrying out the orders
of the commission; and (7) without examination, close, for such
period or periods as the commission may deem necessary, any bank
facing an emergency due to withdrawal of deposits or otherwise, or,
without closing such bank, grant to it the right to suspend or limit the
withdrawal of deposits, for such period as the commission may deter-
mine. Provided, however, that powers enumerated in (1), (2), (3)
and (7) are to be exercised only upon request of directors of such
bank. If any such bank shall fail or refuse to comply with any such
order or orders of the commission, or if the commission shall deter-
mine that a receiver should be appointed, it may provide for the ap-
pointment of a receiver to take charge of the business affairs and
assets of the said bank and to wind up its affairs as hereinafter
provided.

If, however, upon the examination of any bank, it shall be found to
be insolvent, or it is deemed necessary by the State corporation com-
mission for the protection of the public interests, the commission may
at once close the doors of such bank without any notice whatsoever,
and the chief examiner of banks, or one of his assistants, shall take
charge of the books, assets and affairs of such bank until the appoint-
ment of a receiver as provided by law.

If, upon such examination, it shall appear to the State corporation
commission that any such bank, which is designated as a State deposi-
tory, is insolvent or is unable to meet its obligations and the legal
demands upon it in the ordinary course of its business, the State cor-
poration commission shall forthwith notify the treasurer of the Com-
monwealth, who shall discontinue further deposits therein of State
funds and take such action as may be necessary to protect the deposits
of the State therein.

In any case the said State corporation commission may, and it shall
be its duty, whenever, in its judgment, it is necessary for the protection
of the interests of the State or of the depositors and creditors of any
such bank doing business in this State, or of the creditors of any trust
company doing business in this State, to apply to any court in this
Commonwealth having jurisdiction to appoint receivers, for the ap-
pointment of a receiver to take charge of the business affairs and assets
and to wind up the affairs and business of any such bank or trust com-
pany failing to comply with the requirements of the State corporation
commission, or found upon examination to be insolvent or unable to
meet its obligations and the legal demands made upon it in the ordinary
course and conduct of its business, as aforesaid.

And where such receiver shall be appointed for any bank authorized
to do a trust business or for any trust company he may be empowered
by the court by which he is appointed to act for and on behalf of such
bank or trust company in the execution of the power of sale conferred
upon such bank or trust company by any instrument, and, where such
sale is made, to execute, acknowledge and deliver for and on behalf
of such bank or trust company such deed as may be proper under the
provisions of such instrument for the conveyance of title to the prop-
erty conveyed therein, and upon payment of the amount secured under
any such instrument, to execute, acknowledge and deliver for and on
behalf of such bank or trust company a proper release deed for the
property conveyed therein. And any such sale made by such receiver
and any such deed or release deed executed by him, when so authorized
and empowered, shall be as effective and as binding as if the same had
been made or executed by such bank or trust company before the
appointment of such receiver. And all sales which have been made
by any such receivers within the State of Virginia and all such deeds
and release deeds which have been executed by any such receivers
within this State under the authority of the court by which they were
appointed, since the seventeenth day of June, nineteen hundred and
twenty-eight, the date upon which the Virginia banking act became
effective, shall be as effective and as binding as if the same had been
made by such bank or trust company before the appointment of such
receiver.

Such receiver shall be and become assignee of the assets and prop-
erty of any such bank or trust company, with power to prosecute and
defend, in the name of the bank or trust company or in his name as
such receiver or otherwise, in Virginia or elsewhere, all such suits as
may be necessary for the purposes aforesaid, and to appoint such
agents or attorneys for any such purposes as the court may approve.
| 2. An emergency existing, this act shall be in force from its

passage. .