CHAPTER 81

AN ACT to amend and reenact § 6-51 of the Code of Virginia, relating to
acquisition or loans on a bank’s own stock; other investments or

loans.
(H 146]
Approved February 21, 1956

Be it enacted by the General Assembly of Virginia:

1. ‘Fhat § 6-51 of the Code of Virginia be amended and reenacted
as follows:

§ 6-51. No bank shall acquire or own its own stock except to pro-
tect 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 of 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 §§ 6-78 and 6-79 from making any
loan; this provision shall not, however, prevent any bank, (1) from
acquiring any such stock, notes or other obligations to protect itself or
any fund’ in its custody or possession against loss from debts theretofore
contracted; nor (2) from acquiring, owning and holding stock of a build-
CHS. 81, 82, 83] ACTS OF ASSEMBLY 85

ing corporation of the character and to the amount provided by § 6-49,
nor (3) from acquiring, owning and holding stock of an agricultural
credit corporation organized under the laws of this State, 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 (4) from acquiring,
owning and holding stock of Federal National Mortgage Association; nor
shall the provisions hereof be construed to require a bank to dispose of
any preferred stocks lawfully acquired as an investment prior to the first
day of January, nineteen hundred and forty.