CHAPTER 61

An Act to amend and reenact § 6.1-57 of the Code of Virginia, relating
to bank investments in bank building. rH 248]

Approved February 26, 1968

Be it enacted by the Genera] Assembly of Virginia:

1. That § 6.1-57, of the Code of Virginia be amended and reenacted as
follows:

§ 6.1-57. No bank * , without the approval of the Commission, shall
invest in its bank building and premises, * or property held for future
accommodation, or in stock or other obligations of any corporation holding
title to premises of the bank, if the aggregate of such investments and
loans, together with the amount of any indebtedness of such corporation,
fifty per centum or more of whose stock is owned by the bank, will exceed
fifty per centum of the capital stock, surplus and undivided profits of the
bank, or one hundred per centum of the capital stock of the bank, which-
ever is greater. If, subsequent to any * investment or loan, the surplus
or undivided profits of any such bank * be diminished by losses so that
such investments or loans shall amount to more than fifty per * centum of
its paid-in capital stock and its remaining surplus and undivided profits,
or one hundred per centum of the capital stock, whichever is greater,
such bank * shall not pay dividends * without the permission of the Com-
mission until such investment or loans shall be equal to or less than fifty
per centum of the capital stock, surplus, and undivided profits, or one
hundred per centum of the capital stock of the bank, whichever is greater.

In computing the bank’s investment in depreciable property, the
tnitial price or cost may be reduced by reasonable depreciation.

The Commission shall not in any event approve investments and loans
in excess of the foregoing if the aggregate amount thereof would exceed
sixty per centum of the bank’s capital stock, surplus and undivided profits.
The Commission in approving such excess investments may impose, as a
condition of such approval, restrictions upon dividends or other restric-
tions upon the bank, which restrictions shall expire automatically when
the investment of the bank in building premises shall no longer exceed
fifty per centum of the capital stock, surplus and undivided profits of the
bank, or one hundred per centum of the capital stock, whichever is greater.