Chap. 378.—An ACT to amend and re-enact section 4163 of the Code of
Virginia. [H B 315]
Approved March 24, 1922.

1. Be it enacted by the general assembly of Virginia, That sec-
four thousand one hundred and sixty-three of the Code of Virginia
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 dis-
cretion 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 examin-
ation the State corporation commission shall on the first day of July
of each and every year assess every duilding 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 now assessed against
incorporated State banks under the provisions of section forty-one
hundred and twenty-two of the Code of Virginia, as amended. The
provisions of section forty-one hundred and twenty-two of the Code
of Virginia, as amended, are hereby made applicable in all respects
1922. ] ACTS OF ASSEMBLY. 623

to all building and loan associations doing business in this State,
whether incorporated loan associations doing business in this State,
whether incorporated 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.

(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 eviden-
ces 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 building
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 financially
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 irregularities
are being practiced, or that the capital stock of such association has
been or is in danger of being impaired, or that the business in the
hands of dishonest or unreliable persons, or that the interests of the
public are not being properly protected, the State eorporation com-
mission 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, installment payments,
or contributions, to be held or used in any plan of accumulation or
investment, or of issuing, negotiating, offering for sale, or selling any
contract, on the partial payment or installment plan, or single payment
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 examination
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.

This act shall not apply to any bank, trust company, insurance
company, or to any building and loan company which has no-mutual
features and does not receive deposits, but merely lends its own
capital to persons who are not members of the association or stock-
holders thereof.

This act shall not apply to any building and loan company that
does not receive deposits subject to check and that annually within
sixty (60) days after the expiration of its fiscal year furnishes to the
State corporation commission, on such form as it may prescribe, a
statement and report satisfactory to the commission of its condition,
duly certified by a certified public accountant.