Chap. 289.—An ACT to amend and re-enact section 53 of the Virginia banking
act as amended and re-enacted by chapter 503 of the acts of the general
assembly of Vrginia for the year 192,8 by conferring certain powers upon
receivers for trust companies and banks authorized to do a trust business.

[S B 300]
Approved March 24, 1930

1. Be it enacted by the general assembly of Virginia, That section
fifty-three of the Virginia banking act, as amended and re-enacted by
an act of the general assembly of Virginia, approved March twenty-
sixth, nineteen hundred and twenty-eight, the same being chapter five
hundred and three of the acts of the general assembly of Virginia for
the year nineteen hundred and twenty-eight, be amended and re-enacted
‘so as to read as follows:

Section 53. Statements rendered to the State corporation com-
mission 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 com-
mission 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 car-
ried 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 pub-
lished 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 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 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 mav deem necessary,
cause to be examined each and every bank doing business in this State.

Said State corporation commission shall also upon written appli-
cation 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 in-
cident to such special examination shall be borne by the bank so ex-
amined. 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, 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 investiga-
tion 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.

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 direc-
tors of such banks and demand that the impairment of the capital
stock shall be made good, or that the said irregularities shall be prompt-
ly corrected, and upon the failure so to do within a reasonable time,
not exceeding thirty days after such notice, may provide for the ap-
pointment 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 deposi-
tory, is insolvent or is unable to meet its obligations and the legal de-
mands upon it in the ordinary course of its business, the State corpora-
tion commission shall forthwith notify the treasurer of the Common-
wealth, 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 pro-
tection 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
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 or
trust company 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 con-
ferred 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 property 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 ap-
pointment of such receiver. And all sales which have been made by any
such receivers within the State of Virginia and all such deeds and re-
lease deeds which have been executed by any such receivers within
this State under the authority of the court by which they were ap-
pointed, since the seventeenth day of June, nineteen hundred and twen-
ty-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 because of the uncertain state of cer-
tain titles to real estate within the State of Virginia and because of the
necessity of the execution of the power of sale under certain deeds of
trust, this act shall be in force from its passage.

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