A. No trust institution shall buy any property for a trust or estate from itself, or a department or branch thereof, or from an affiliate or subsidiary corporation, or from a director, officer, or employee of such trust institution. Any such purchase shall be voidable at the election of any beneficiary or successor trustee, unless (i) approved by an appropriate court, (ii) consented to by all beneficiaries after full and fair disclosure, (iii) authorized by the instrument creating the fiduciary relationship, or (iv) permitted by ruling of the Commissioner.
B. A sale of any trust or fiduciary property by a trust institution to itself, or a department or branch of such trust institution, or to an affiliate or subsidiary corporation, or to a director, officer, or employee of such trust institution, except as (i) approved by an appropriate court, (ii) consented to by all beneficiaries after full and fair disclosure, (iii) authorized by the instrument creating the fiduciary relationship, or (iv) permitted by ruling of the Commissioner, shall be a breach of trust and voidable at the election of any beneficiary or successor trustee.
C. Notwithstanding the provisions of subsections A and B, a trust institution, as fiduciary of one estate or trust, may buy or sell from or to itself, as fiduciary of another estate or trust, assets which at the time of sale are permissible fiduciary investments under Part A (§ 64.2-1200 et seq.) of Subtitle IV of Title 64.2, if the transaction is fair to both estates or trusts and is not prohibited by the terms of any instrument under which the fiduciary is acting.
Code 1950, § 6-102; 1966, c. 584, § 6.1-24; 1974, c. 665; 1991, c. 252; 2010, c. 794.
Structure Code of Virginia
Title 6.2 - Financial Institutions and Services
Chapter 10 - Entities Conducting Trust Business
§ 6.2-1001. Entities authorized to engage in trust business
§ 6.2-1002. Powers of trust institutions
§ 6.2-1003. When security not required; payment of probate taxes and fees
§ 6.2-1004. Who may take oath for corporate fiduciary
§ 6.2-1005. Deposit or other use of trust funds
§ 6.2-1006. Custody of trust securities to be kept separate; federal securities and obligations
§ 6.2-1007. Investment of trust funds
§ 6.2-1008. Dealings with self or affiliates
§ 6.2-1009. Common trust and collective investment funds
§ 6.2-1010. Holding stock or other securities as fiduciary
§ 6.2-1011. Voting of bank shares held by trust institution as fiduciary; when disqualified
§ 6.2-1012. Suspension or prohibition of trust institutions
§ 6.2-1014. Certificate required
§ 6.2-1015. Application for certificate; fee
§ 6.2-1017. Procedure for granting or denying certificate
§ 6.2-1018. Minimum capital; state of incorporation; form of entity
§ 6.2-1019. Issuance of shares; subscriptions to stock; stock option plans
§ 6.2-1020. Certain transactions by affiliated trust companies prohibited
§ 6.2-1021. Commissions or fees for sale of stock not permitted
§ 6.2-1022. Reacquisition of shares; dividends
§ 6.2-1023. Acquisition of stock; application
§ 6.2-1024. Restrictions on control, officers and directors
§ 6.2-1025. Report to Commission of election of director
§ 6.2-1026. Removal of director or officer; appeals; penalty
§ 6.2-1027. Bonds required of officers and employees; blanket bond
§ 6.2-1030. Discount by officer, director, or employee of refused paper
§ 6.2-1032. Investigations; examinations
§ 6.2-1036. Commission's remedial powers
§ 6.2-1037. Effect of surrender or revocation of certificate
§ 6.2-1038. Appointment of receiver
§ 6.2-1040. Unlawful use of terms indicating that business is trust company; penalty
§ 6.2-1041. Civil penalties for failure to comply with § 62-1031 or 62-1032
§ 6.2-1042. Making derogatory statements affecting trust companies; penalty
§ 6.2-1043. Use of trust company name, logo, or symbol for marketing purposes; penalty
§ 6.2-1044. Offenses by officer, director, agent or employee of trust company; penalties
§ 6.2-1046. Civil penalties for violation of Commission's orders
§ 6.2-1048. Organization of subsidiary trust companies
§ 6.2-1049. Permissible business
§ 6.2-1051. Report to Commission of election of director
§ 6.2-1052. Removal of director or officer; appeals; penalty
§ 6.2-1053. Bonds required of officers and employees; blanket bond
§ 6.2-1054. Certificate required
§ 6.2-1056. When security not required of trust subsidiaries
§ 6.2-1057. Deposits held or received by trust subsidiaries or subsidiary bank with affiliate banks
§ 6.2-1058. Substitution of trust subsidiary as fiduciary
§ 6.2-1059. Substitution of subsidiary bank as fiduciary
§ 6.2-1060. Trust subsidiaries to have same powers and restrictions as bank trust departments
§ 6.2-1061. Reports; investigations and examinations; civil penalties
§ 6.2-1062. Offenses by officer, director, agent or employee of trust subsidiary; penalties
§ 6.2-1064. Civil penalties for violation of Commission's orders
§ 6.2-1066. Interstate trust offices by Virginia state banks
§ 6.2-1067. Trust business of out-of-state trust institution
§ 6.2-1069. Filing requirements
§ 6.2-1070. Conditions for approval
§ 6.2-1071. Examinations; periodic reports; cooperative agreements; assessment of fees
§ 6.2-1075. Organization; minimum capital; notice to Bureau; control
§ 6.2-1076. Operation and powers
§ 6.2-1077. Reacquisition of shares or interests; dividends
§ 6.2-1079. Directors or managers
§ 6.2-1080. Limitation on powers
§ 6.2-1082. Applications for permission to offer trust services
§ 6.2-1085. When security not required
§ 6.2-1086. Association's operation and supervision of trust department
§ 6.2-1087. Books and accounts
§ 6.2-1088. Investment of funds and assets held as fiduciary
§ 6.2-1089. Funds awaiting investment or distribution
§ 6.2-1090. Dealings with self or affiliates
§ 6.2-1092. Transactions between trust accounts
§ 6.2-1093. Custody of assets and investments held in trust
§ 6.2-1094. Establishment of common trust funds and collective investment funds; court accountings
§ 6.2-1095. Compensation of association acting as fiduciary
§ 6.2-1096. Surrender of trust powers by association