Chap. 503.—An ACT to amend and re-enact sections 53 and 58 of the Virginia
banking act. [S B 393]

_ Approved March 26, 1928

1. Be it enacted by the gencral assembly of Virginia, That sections
fifty-three and fifty-eight of the Virginia banking act be amended
and re-enacted so as to read as follows:

Section 53. 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—Every
bank as hereinafter 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 statements to the comptroller of
the currency and at such other times as the State corporation commis-
sion 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 state-
ments 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 prescribed by the State corporation com-
mission 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 com-
mission to call upon all such banks doing business 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 pro-
visions of this section. Whenever calls for statements 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 cor-
poration 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 neces-
sary, 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
expenses 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 examina-
tion, give to such examiner full access to all the money, books, papers,
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 investigation 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 opera-
tion of any such bank touching any matter or thing pertaining to said
examination, 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.

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 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 provide for the appoint-
ment 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
commission for the protection of the public interests, the commission
may at once close the doors of such bank without any notice whatso-
ever, 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
appointment 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
depository, is insolvent or is unable to meet its obligations and the
legal demands upon it in the ordinary course of its business, the State
corporation commission shall forthwith notify 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 shal!
be its duty, whenever, in its judgment, it is necessary for the protec-
tion of the interests of the State or of the depositors and creditors 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 affairs and
assets and to wind up the affairs and business of any such bank 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.

Section 58. 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 fifty-three of this act, fees as follows:

For the examination of banks for a period of one year, a minimum
fee of fifty dollars per bank, which shall cover the first fifty thousand
dollars of assets or less, to which shall be added, in the case of each
bank, according to its total assets, as shown by the statement of financial
condition made to the State corporation commission next preceding
June the first as follows: For the amount by which its total assets
exceed fifty thousand dollars and do not exceed five hundred thon-
sand dollars, two dollars per ten thousand or fraction thereof; for
the amount by which its total assets exceed five hundred thousand
dollars and do not exceed two and a half million dollars, one dollar per
ten thousand or fraction thereof; for the amount by which its total
assets exceed two and a half million dollars and do not exceed five
million dollars, one dollar per twenty thousand dollars or fraction
thereof; for the amount by which its total assets exceed five million
dollars, and do not exceed ten million dollars, one dollar per forty
thousand or fraction thereof; for all assets over ten million dollars,
one dollar per one hundred thousand dollars or fraction thereof;
provided, however, that in the case of banks, the total assets of which
do not exceed one hundred thousand dollars of total resources, the
fee shall not exceed forty dollars.

And every bank having a branch or branches shall be assessed fifty
dollars per branch, in addition to the foregoing fees, which amounts
shall be assessed against each such 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 on or before the thirty-first day of
July following. All fees so assessed shall be a lien on the assets of the
bank, and if not paid within thirty days from the 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 give advice thereof to
the comptroller and it shall be the duty of the comptroller 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.

Every bank authorized to begin business after the first day of July
and before the thirty-first day of December in any year, shall pay
the full amount of fees prescribed above; and every bank authorized to
begin business after the first day of January and before the thirtieth
day of June of any-year, shall pav one-half of the fees prescribed
above. Such fees shall be based on the total resources of such bank at
its first examination after it has been authorized to begin business,
and at that time collected by the chief examiner of banks and paid
into the treasury as other funds arising under the provistons of this act.

Every national bank which is now or may hereafter be designated
a State depository shall, so long as it may be designated a State
depository, annually pay the following fees:

If the maximum amount of State moneys which may be lawfully
held on deposit in such bank at any one time be ten thousand dollars
or less, such annual fee shall be twenty-five dollars ;

If such maximum amount be twenty-five thousand dollars, such
annual fee shall be forty dollars;

If such maximum amount be fifty thousand dollars, such annual
fee shall be fifty dollars; )

If such maximum amount be seventy-five thousand dollars, such
annual fee shall be sixty dollars;

If such maximum amount be one hundred thousand dollars, such
annual fee shall be seventy-five dollars;

If such maximum amount be one hundred and fifty thousand dol-
lars, such annual fee shall be cne hundred dollars; and

If such maximum amount be over one hundred and fifty thousand
dollars, such annual fee shall be two hundred dollars.

Such fees, according to the scale aforesaid, payable by such
national banks, 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 on or before
the thirty-first day of July following. The same provision in this
section which makes the examination fee assessment a lien against the
assets of a State bank shall apply to such of the national banks as are
qualified State depositories on the first day of July of each and every
year. The State corporation commission shall mail the assessment to
each of the national banks above referred to on or before the first
of July of each year, and give advice thereof to the comptroller, 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 assessments on or before July thirty-first.

Every national bank which is now or may hereafter be designated
as a State depository shall, so long as it may be designated a State
depository, be subject to the same examination as is provided for by
section fifty-three of this act in the case of State banks, and all the
provisions of this act applicable to the examination of State banks
shall be applicable to the examination of national banks; provided,
however, that no such examination shall be made of a national bank
which is a State depository except when, in the opinion of the State
treasurer, such examination is necessary for the protection of the
State; and provided, further, that the annual fees prescribed by this
section for national banks which are State depositories shall be assessed
and paid whether there is an examination in any particular case or
not; and provided, further, that the chief examiner of banks may at
any time avail himself of information acquired by the United States
government concerning the affairs of any such national bank to the
extent that the laws of the United States so permit.