A. A trust company shall not issue no-par stock. The stock of a trust company shall be paid for in money at not less than par value, and a trust company shall not begin business until it has received payment in full of the amounts of initial capital specified in its certificate of authority.
B. Money received for subscriptions to or purchases of stock of a trust company before it opens for business shall be deposited in escrow in one or more insured financial institutions or invested in United States government obligations. Such funds shall be under the joint control of at least two organizing directors of the trust company, each of whom shall be bonded for an amount not less than the total amount of money under their control. Such funds, together with any income thereon, less such organizational expenses as have been approved by the trust company's board of directors, shall be remitted to the trust company on the day it opens for business.
C. If the trust company is denied a certificate of authority, or it is otherwise determined that the trust company will not open for business, such funds, after payment of any amount owing for expenses in connection with such attempted organization, including reasonable consulting fees, attorney fees, salaries, filing fees, and other expenses, shall be refunded to subscribers or shareholders. The directors of the trust company, individually, jointly, and severally, shall be liable for any failure of the trust company to refund such funds to the subscribers or shareholders. This liability may be enforced by a suit in equity instituted by one or more of the subscribers or stockholders on behalf of all subscribers or stockholders against the trust company and one or more of its directors.
D. The requirement that capital stock be paid for in money shall not be construed to prohibit the establishment, as otherwise authorized by law, of stock option plans and stock purchase plans, or the issuance of stock pursuant to such plans. Such plans shall be established only after the trust company has opened for business and shall be approved by the shareholders of the company in accordance with applicable provisions of the Virginia Stock Corporation Act (§ 13.1-601 et seq.).
1994, c. 5, § 6.1-32.18:1; 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