Chap. 261.—An ACT to amend and re-enact Section 32 of an Act entitled ‘‘An Act to
revise, collate and codify into one Act the General Statutes of the Common-
wealth, relating to banks and banking, which act shall constitute and be desig-
nated 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
violation thereof,’’ approved March 27, 1928, relating to the kinds of business
banks may do, the powers they may exercise and limitations as to investments.

[S B 199]
Approved March 27, 1940

1. Be it enacted by the General Assembly of Virginia, That
section thirty-two 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 violation thereof,’ approved March
twenty-seventh, nineteen hundred and twenty-eight, be amended and
re-enacted so as to read as follows:

Section 32. Every such bank or banking institution may pur-
chase, hold and convey real estate for the following purposes and for
none other:
First: Such as shall be necessary for its immediate accommoda-
tion in the transaction of its business;

Second: Such as shall be mortgaged or otherwise encumbered to
it in good faith by way of security for debts contracted;

Third: Such as shall be conveyed to it in satisfaction of debts
previously contracted in the course of its dealings;

Fourth: Such as it shall purchase at sales under judgments, de-
crees, mortgages, or deeds of trust held by it, in whole or in part or
shall purchase to secure debts due to it; but no such bank or banking
institution shall hold the possession of any real estate under mortgage
or other encumbrance or the title and possession of any real estate
conveyed to it in satisfaction of debt or purchased by it for the pro-
tection of obligations secured thereby, for a longer period than ten
years except with the written consent and approval of the State
Corporation Commission, provided, however, that if within such ten
year period, a bank shall have reduced upon its books the asset value
of such mortgage, deed of trust or real estate to the nominal sum of
one dollar, it may thereafter continue to hold and own the same in-
definitely without the consent and approval of the State Corporation
Commission as hereinabove provided. But this provision shall not
affect the validity of the title to any such real estate conveyed or
transferred by said bank or banking institution after the lapse of
such ten year period.