A. Funds and assets held in a fiduciary capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the trust account.
B. Funds and assets held in trust by an association, including managing agency accounts, awaiting investment or distribution, unless prohibited by the governing instrument, may be deposited in other departments of the association, provided that the association shall first set aside under the sole control of the trust department, as collateral security:
1. Direct obligations of the United States, or other obligations fully guaranteed by the United States as to principal and interest;
2. Readily marketable securities of the classes in which fiduciaries are authorized or permitted to invest trust funds, as set forth in § 64.2-1502; or
3. Other readily marketable securities as may be authorized by the Commissioner.
Such collateral securities, or securities substituted therefor as collateral, shall at all times be at least equal in face value to the amount of trust funds so deposited, but such security shall not be required to the extent that the funds so deposited are insured by the Federal Deposit Insurance Corporation or other federal insurance agency. The requirements of this subsection are met when qualifying assets of the association are pledged in such manner as to fully secure all trust account funds deposited by the trust department of the association in another department of the association.
C. Any funds held by an association as fiduciary awaiting investment or distribution and deposited in other departments of the association shall be made productive.
D. In the event of the failure or liquidation of an association, the owners of the funds held in trust and deposited in another department of the association shall have a first lien on the securities set apart as collateral for such funds, in addition to any other claim that such owners may have against the association.
1984, c. 303, § 6.1-195.86; 1990, c. 3; 1992, c. 810; 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