Chap. 12.—An ACT to amend and re-enact Section 12 of Chapter 507 of the Acts
* of Assembly of 1928, approved March 27, 1928, and known as the Virginia
Banking Act, as heretotore amended, relating to the kinds of business which
banks may do, powers they may exercise, and limitations as to investments.
[S B 25]

Approved February 16, 1946

Be it enacted by the General Assembly of Virginia:

1. That section twelve of chapter five hundred seven of the Acts
of Assembly of nineteen hundred twenty-eight, approved March twenty-
seventh, nineteen hundred twenty-eight, and known as the Virginia
Banking Act, as heretofore amended, be amended and re-enacted as
follows:

Section 12. Kinds of business banks may do; powers they may ex-
ercise ; limitations as to investments.—L[-very 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 ex-
change, promissory notes, drafts, and other evidences of debt; by re-
ceiving deposits; by buying and selling exchange, coin, and bullion; by
loaning money on real and personal securities, or collateral; by guar-
anteeing the payment of bonds, bills, notes and other obligations, having
not more than six months to run; by rediscounting paper; and in pur-
chasing and selling bonds.

No bank shall acquire or own its own stock except when done to
protect itself against loss from debts previously contracted, in which
case it shall be disposed of within twelve months from the time acquired.
No bank shall make loans collaterally secured by the stock of such bank.
No bank shall invest any of its funds in shares ot stock of any other cor-
poration nor in any notes or other obligations secured by real estate on
which as security it is prohibited by section forty-eight-a of this act from
making any loan; this provision shall not, however, prevent any bank
from acquiring any such stock, notes or other obligations to protect itself
or any fund in its custody or possession against loss from debts thereto-
fore contracted, nor from acquiring, owning and holding stock of a
building corporation of the character and to the amount provided by
section thirty-one of this act, nor from acquiring, owning and holding
stock of an agricultural credit corporation organized under the laws of
the State of Virginia, provided that the total amount of such stock shall
not exceed twenty per centum of the amount of the capital stock of such
bank actually paid in and unimpaired, plus the amount of its unimpaired
surplus fund, nor shall the provisions hereof be construed to require a
bank to dispose of any preferred stocks lawfully acquired as an invest-
ment prior to the first day of January, nineteen hundred forty.