An Act to amend and reenact § 46.1-299, as amended, of the Code of Virginia, relating to devices signalling intention to turn or stop and rules therefor.
Volume 1968 Law 99
Law Body
Chap. 491.—An ACT to amend and re-enact sections 4099, 4100, 4105, 4110. 4111.
4113, 4115, 4120, 4121, 4122, 4123 and 4129 of the Code of Virginia. [H B 405°
Approved March 25, 1920.
1. Be it enacted by the general assembly of Virginia, That sec-
tions four thousand and ninety-nine, four thousand one hundred, four
thousand one hundred and five, four thousand and one hundred and
ten, four thousand one hundred and eleven, four thousand one hundred
1920. ] ACTS OF ASSEMBLY, 819
ind thirteen, four thousand one hundred and fifteen, four thousand
yne hundred and twenty, four thousand one hundred and twenty-one,
four thousand one hundred and twenty-two, four thousand one hundred
and twenty-three, and four thousand one hundred and twenty-nine of
the Code of Virginia, be amended and re-enacted so as to read as
follows:
Sec. 4099. Minimum capital stock of banks ; investigation by State
corporation commission.—The State corporation commission shall not
have power to issue a charter to a bank with a minimum capital stock
of less than twenty-five thousand dollars, except that banks with a
capital stock of not less than fifteen thousand dollars may be char-
tered in any place, the population of which does not exceed two thou-
sand inhabitants, and provided that the minimum capital stock of
(rust companies shall be as prescribed by section forty-one hundred
and forty-six.
Sec. 4100. What part of capital to be paid before commencing
business; when residue to be paid.—Hereafter subscriptions to the
capital stock of any bank, incorporated under the laws of this State,
shall be paid in money at not less than par, and at least the minimum
amount of capital prescribed by the charter shall be subscribed, and
at least fifty per centum of the subscription of each subscriber shall
actually be paid in before such bank shall be authorized to commence
business, and the balance shall be paid in within one year after such
bank has been authorized to commence business by the State corpora-
tion commission. But no bank shall be authorized -to commence busi-
ness until at least fifteen thousand dollars of its capital stock has
been actually paid in money, and no trust company shall be author-
ized to commence business until the provisions of section forty-one
hundred and forty-six shall have been complied with.
Sec. 4105. Not to begin business before obtaining certificate from
State corporation commission; publication of certificate—Before any
bank shall commence business it shall obtain from the State corpora-
tion commission a certificate authorizing it to commence business ; and
prior to the issuance of such certificate, the State corporation commis-
sion, through its chief examiner of banks, or one of his assistants,
shall ascertain that all the provisions of law have been complied with
that the required amount of capital stock has actually been subscribed
and paid in cash, and that the oaths of all of the directors have been
taken and filed in accordance with the provisions of section four thou-
sand one hundred and seventeen of the Code of Virginia. The bank
within ten days after the receipt of the certificate from the said State
corporation commission shall cause the same to be published in some
newspaper printed in the county or city where such bank is located,
once each week for two successive weeks, or if no newspaper is pub-
lished in said county or city, then such publication shall be made at
the nearest place at which a newspaper is published. Proof of such
publication shall be filed with the State corporation commission. For
any violation of this section such bank shall be subject to a fine of not
less than twenty-five nor more than one hundred dollars per day fot
each day’s violation, said fine to be imposed and judgment entered by
the State corporation commission, and enforced by its process.
Secs 4110. Settlement of cashier’s accounts.—The directors shall,
at least twice in each calendar year, cause an examination to be made
of the moneys of the bank, and a settlement to be made of the accounts
of the cashier, a statement of which examination and settlement shall
be recorded with the proceedings of the board.
Sec. 4111. Kind of business banks may do; powers they may
exercise.—Every such bank shall have power to exercise, by its board
of directors, or duly authorized officers or agents, subject to law, all
such incidental powers as shall be necessary to carry on the business
of banking, by discounting and negotiating bills of exchange, promis-
sory notes, drafts and other evidences of debt; by receiving deposits ;
by buying and selling exchange, coin and bullion, and by loaning
money on real and personal security, or collateral; by guaranteeing
the payment of bonds, bills, notes, and other obligations; by redis-
counting paper; and in purchasing and selling all stocks and bonds:
provided, however, that when any such bank shall purchase or acquire
any of its own capital stock, it shall, within six months from the time
of purchase, be sold or disposed of.
‘Sec. 4113. How banks may use their deposits and other funds.—
Every such bank shall have power to use money it may receive on de-
posit, and its other funds, in the manner prescribed in section forty-
one hundred and eleven, provided, however, that every such bank
shall at all times thaintain a reserve of at least ten per centum of its
demand deposits and of at least three per centum of its time deposits.
Sec. 4115. Limit of liability of borrowers; loans on stock.—The
total liabilities of any person, partnership or corporation to any bank.
including liabilities of the co-partnership and the liabilities of the sev-
eral members thereof, except special partners, shall at no time exceed
twenty-five per centum of the capital and permanent surplus of such
bank, unless the same shall be authorized by a resolution of the
board of directors, approved by a majority of said board, which reso-
lution shall be recorded in the minutes thereof, and signed by the direc.
tors present and consenting thereto. The word “liabilities” as hereir
used shall include liability both as maker and endorser. No loan shal
be made by a bank on the security of shares of stock in such bank 1
excess of two-thirds of the book value of such stock at the time tha
such loan is made, nor in any case until such shares are fully pai
for in cash.
Sec. 4120. Statements rendered to the State corporation commis
sion and published; State corporation commission to furnish forms
when to cause examination of banks; notice of impairment of capital
closing banks; receivers; discontinuance of State deposits —Ever
bank as hereinafter defined in section four thousand one hundred an
twenty-three shall make to the State corporation commission state
ments of its financial condition at such times as the national bank
organized under the laws of the United States are required to mak
their statements to the controller of the currency and at such othe
ACTS OF ASSEMBLY. &21
times as the State corporation commission may deem necessary ; and
also within fifteen days after such call publish such statements in con-
densed 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 a
newspaper published in the county, city or town nearest thereto. The
statement shall be made and published in accordance with forms pre-
scribed 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 business in Virginia for the statements hereinbefore men-
tioned, and at the time prescribed, and to have prepared such forms
as may be necessary to carry out the provisions of this section. When-
ever calls for statements are made by the State corporation commis-
sion, it shall forward to each such bank two blank forms, one of
which, after being properly filled out and certified as hereinbefore re-
quired, 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
and shall likewise cause to be examined at least once 1n each and every
year all national banks which are or may hereafter be qualified State
depositories. Said State corporation commission shall also, upon writ-
ten application 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, ir
the judgment of the.State corporation commission, it may be necessary
for the protection of the public or of persons depositing or dealing
with such bank, cause to be made a special examination of such bank
All expenses incident to such special examination shall be borne by
the bank so examined. In making such examinations as required b}
this section, the officers, directors, and employees of such banks shall
upon the demand of the person or officer designated to make suct
“xamination, give to such examiner full access to all the money, books
papers, notes, bills and other evidences of debt due said bank anc
shall also disclose fully and truly all indebtedness and liability thereof
ind shall furnish him with all information which he may deem neces
sary to a full investigation into the affairs of said bank, and saic
*xaminer shall have the right to examine under oath any and all o
the directors, officers, clerks and employees, in any manner connectec
with the operation of any such bank touching any matter or thing per
aining to said examination, and for that purpose shall have authorit)
o administer oaths to them. No previous notice of any examunatior
shall be given such bank or any of its directors. officers or employees
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 bank and demand that the impairment of the capital
stock shall be made good, or that the said irregularities shall be
promptly corrected, and upon the failure so to do within a reasonable
time, not exceeding thirty days after such notice, may apply for the
appointment of a receiver to take charge of the business affairs and
assets of 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 depasi-
tory, is insolvent or is unable to mcet its obligations and the legal
demands upon it in the ordinary course of its business, the State cor-
poration commission shall forthwith notify the auditor of public ac-
counts and the treasurer of the Commonwealth, 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 credi-
tors of any such bank doing business in this State, to apply to any
court in this Commonwealth having jurisdiction to appoint receivers,
for the appointment of a receiver to take charge of the business at-
fairs and assets and to wind up the affairs and business of any such
bank failing to comply with the requirements of the State corpora-
tion 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.
Sec. 4121. Appointment of examiners and assistants—The State
corporation commission, for the purpose of carrying out the pro-
visions of this chapter, shall appoint a chief examiner and such assist-
ant examiners, clerks and stenographers as in its judgment may be
necessary for the discharge of the several duties imposed upon it by
this chapter, provided that the persons appointed for the examination
of banks shall be citizens of this State, experienced and skilled in
the science of bookkeeping, and shall have had at least five years of
service in some bank, and the State corporation commission shall fix
the salaries of such chief examiner, assistant examiners, clerks and
stenographers. Such chief examiners and assistant examiners before
entering upon the duties of their office, shall take the necessary oath
before the State corporation commission as prescribed by the Con-
stitution of this State, and such chief examiner and his assistants en-
gaged in the examination of banks shall give bond in the penalty of
five thousand dollars, with surety in some good solvent bonding com-
pany to be approved by the State corporation commission, conditioned
for the faithful performance of their duties, and the premiums on
said bonds shall be paid out of the fund created by the next section.
Sec. 4122. Fees for examination; when excess of fees to be re-
funded.—Every such bank shall pay for its semi-annual examination
provided for by section forty-one hundred and twenty, fees as follows:
For the examination of banks for a period of one vear having
total resources, as shown by statement of financial condition made
to the State corporation commission next preceding June first, of
each year, of fifty thousand dollars or less, a fee of twenty-five dollars
per annum; for banks having total resources of more than fifty thou-
sand dollars and not over one hundred thousand dollars a fee of thirty-
five dollars per annum; for banks having total resources of more
than one hundred thousand dollars and not over two hundred thou-
sand dollars, a fee of forty-five dollars per annum; for banks having
total resources of over two hundred thousand dollars and not over
three hundred thousand dollars, a fee of eighty dollars per annum; for
banks having total resources of more than three hundred thousand
dollars and not over four hundred thousand dollars, a fee of one hun-
dred and five dollars per annum; for banks having total resources
of more than four hundred thousand dollars and not over five hundred
thousand dollars, a fee of one hundred and thirty dollars per annum;
for banks having total resources of more than five hundred thousand
dollars and not over six hundred thousand dollars, a fee of one hun-
dred and sixty dollars per annum; for banks having total resources of
more than six hundred thousand dollars and not over seven hundred
thousand dollars, a fee of one hundred and seventy dollars per annum ;
for banks having total resources of more than seven hundred thou-
sand dollars and not over eight hundred thousand dollars, a fee of one
hundred and eighty dollars per annum: for banks having total re-
sources of more than eight hundred thousand dollars and not over
nine hundred thousand dollars, a fee of one hundred and eighty-five
dollars per annum; for banks having total resources of more than
nine hundred thousand dollars and not over three million dollars, a
fee of two hundred dollars per annum; for banks having total re-
sources of more than three million dollars and not over six million
dollars, a fee of two hundred and twenty-five dollars per annum; for
banks having total resources of six million dollars and over, a fee of
two hundred and seventy-five dollars per annum; and every bank
having one or more branches, shall be assessed twenty dollars for each
branch in addition to the foregoing fees, and in case the examination
of any branch should require more than one day, the parent bank
shall be assessed and pay at the rate of twenty dollars for each addi-
tional day required for the examination of such branch; provided,
that the maximum fee for any one branch shall be fifty dollars, which
amounts shall be assessed against each such bank by the State cor-
poration commission on the first day of July of each and every year,
and shall be’ paid into the State treasury to the credit of the “Banking
fund—State corporation commission,” on or before the thirty-first
day of July following, to be used in carrying out the provisions of this
chapter. All fees so assessed shall be a lien on the assets of the bank,
and if not paid within thirty days from date of said notice may be
recovered in any court of the county or city in which such bank or
institution is located having original jurisdiction of civil cases, on
motion of and in the name of the State corporation commission. The
State corporation commission shall mail the assessment to each bank
on or before July first of each year and certify a copy to the auditor
of public accounts, and it shall be the duty of the auditor of public
accounts to furnish the State corporation commission promptly with a
list of the banks which fail to pay the assessment on or before July
thirty-first. The fees for examination enumerated above shall not
apply to national banks which are now or may hereafter be designated
as a State depository, but the fees assessed against such national banks
shall be as follows: For national banks which are now or may here-
after be designated as a State depository having total resources of
fifty thousand dollars or less, a fee of twenty dollars shall be charged:
for such banks having total resources of more than fifty thousand
dollars and not over one hundred thousand dollars, a fee of twenty-
five dollars shall be charged; for such banks having total resources
of more than one hundred thousand dollars and not over two hun-
dred thousand dollars, a fee of thirty-five dollars shall be charged; for
such banks having total resources of more than two hundred thousand
dollars and not over three hundred thousand dollars, a fee of sixty
dollars shall be charged; for such banks having total resources of
more than three hundred thousand dollars and not over four hundred
thousand dollars, a fee of eighty dollars shall be charged; for such
banks having total resources of more than four hundred thousand
dollars and not over five hundred thousand dollars, a fee of one hun-
dred dollars shall be charged; for such banks having total resources
of more than five hundred thousand dollars and not over nine hundred
thousand dollars, a fee of one hundred and twenty-five dollars shall
be charged ; for such banks having total resources of more than nine
hundred thousand dollars and not over six million dollars, a fee of
one hundred and fifty-five dollars shall be charged; for such banks
having total resources of more than six million dollars and not over
ten million dollars, a fee of one hundred and eighty dollars shall be
charged; and for all such banks having total resources of more than
ten million dollars, a fee of two hundred dollars shall be charged,
which amount shall be assessed against each such national bank by
the State corporation commission on the first day of July of each and
every year, and shall be paid into the State treasury to the credit of
“Banking fund—State corporation commission,” on or before the
thirty-first day of July following to be used in carrying out the pro-
visions of this chapter. The same provision in this section which
makes the assessment a lien against the assets of every such bank,
shall apply to such of the national banks as are qualified State deposi-
tories on the first day of July of each and every year. The State
corporation commission shall mail the assessment to each of the:na-
tional banks above referred to on or before the first day of July of
each year and certify a copy to the auditor of public accounts, and it
shall be his duty to furnish the State corporation commission promptly
with a list of such of the national banks which fail to pay the assess-
ment on or before July thirty-first. All payments from the fund herein
provided shall be upon the order of the State corporation commission,
attested by its clerk. A working balance of three thousand dollars
shall be maintained for the expenses of said department, and whenever
the amount to the credit of the department on the thirtieth day of
June of any year shall exceed the sum of seven thousand five hundred
dollars, the excess over three thousand dollars shall be refunded to
the banks, State and national, in proportion to the fees paid by them,
and the auditor of public accounts is hereby authorized and directed
to draw his warrant on the proper account in the State treasury in
favor of the several banks for a proportionate amount due to each
under the provisions of this section. ‘+
Sec. 4123. Meaning of “bank” in this chapter—The word “bank”
wherever it shall appear in this chapter, shall include banks of deposit
and discount, savings banks, savings societies, savings institutions
and trust companies now chartered, or which may hereafter be char-
tered, and any other corporation now chartered to receive deposits or
to do any banking business, and all persons, firms and associations
receiving deposits, or doing any banking business, except such private
bankers as are within the exception created by section forty-one hun-
dred and thirty of the Code, as though each and every such institu-
tion, person, firm or association was fully and accurately set out and
mentioned.
Sec. 4129. Banks coming under the provision of this chapter—
The provisions of this chapter shall apply to and govern all chartered
banks, including banks of deposit and discount, savings institutions,
savings societies and trust companies, and any other person, firm or
association receiving deposits or doing a banking business, except such
private bankers as are within the exception created by section forty-one
hundred and thirty of the Code, and any other corporations authorized
to receive deposits or to do any branch of the banking business other
than that of banks organized under the banking laws of the United
States, which last mentioned banks are, however, expressly included
within the provisions of this chapter touching the course and conduct
of the business of banking and in so far generally as this State has
the right to enact legislation in regard to such banks. The powers,
privileges, duties and restrictions conferred and imposed upon any
bank existing and doing business under the laws of this State are
hereby abridged, enlarged or modified as each particular case may re-
quire to conform to the provisions of this chapter. Nothing in this
chapter, however, shall be construed to change or affect any privilege
or privileges granted by charter to any bank incorporated before June
fifteenth, nineteen hundred and ten, nor private bankers coming within
the exception created by section forty-one hundred and thirty of the
Code, nor to affect the legality of any investment heretofore made or
of transactions heretofore had pursuant to any provisions of law
in force when such investments were made or transactions had.