Chap. 99.—An ACT to amend and re-enact sections 16, and 20, of an act entitled
an act to revise, collate and codify into one act the general statutes of the Com-
monwealth, relating to banks and banking; which act shall constitute and be
designated and cited as the Virginia banking act, and to repeal all Code sec-
tions and all acts and parts of acts inconsistent therewith, and to provide pen-
alties for the violations thereof, approved March 27, 1928, section 53 of which
was amended by an act approved March 24, 1930. [H B 65]

Approved March 5, 1932

1. Be it enacted by the general assembly of Virginia, That sec-
tions sixteen and twenty, 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, which act shall constitute and be designated and
cited as the Virginia banking act, and to repeal all Code sections
and all acts and parts of acts inconsistent therewith, and to provide
penalties for the violations thereof, approved March twenty-seventh,
nineteeen hundred and twenty-eight, section fifty-three of 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 16. The State corporation commission shall not have
power to issue a charter to a bank with a minimum capital stock of
less than fifty thousand dollars, provided that the minimum capital
stock of trust companies shall be as prescribed by section sixty-nine
of this act, and, in the case of a bank hereafter chartered in any
place, the population of which exceeds twenty-five thousand inhabi-
tants, the minimum capital stock required to issue a charter shall be
increased above fifty thousand dollars in the ratio of five thousand
dollars additional minimum capital stock for each ten thousand inhab-
itants by which the population of such place may exceed twenty-five
thousand inhabitants, as shown by the last federal, State, or local
census preceding the issuance of such charter. |

Section 20. Every director of a bank shall be the owner in his
own name and have in his personal possession or control shares of
stock in the bank of which he is a director having a par value of not
less than five hundred dollars if the bank in which he is such director
has a capital stock of one hundred thousand dollars or under, not
less than seven hundred and fifty dollars if the bank in which he is a
director has a capital stock of more than one hundred thousand and
not more than three hundred thousand dollars, and not less than one
thousand dollars if the bank in which he is a director has a capital
stock of more than three hundred thousand dollars, which stock must
be unpledged and unencumbered at the time of his becoming a di-
rector and during the whole of his term as such; provided, however,
that these requirements shall not apply to any person duly elected a
director of a bank at the time this act takes effect, or so long as he
shall successively be re-elected a director, and as to such person the
present requirements of the law shall apply. Any director violating
the provisions of this section shall, immediately, vacate his office and
the remaining directors shall proceed, forthwith, to fill such vacancy
as provided in section twenty-one of this act.