§ 6.2-884 Ownership and lease of personal property
A. As used in this section, “personal property” includes fixtures.
B. A bank may become the owner and lessor of personal property, subject to the following limitations:
1. Except in the case of short-term leases where a subsequent sale or reletting is anticipated, the rentals receivable by the bank under the initial lease of any item of personal property shall equal at least the cost to the bank of such item of personal property;
2. Any leasing or rental obligations to any bank of any person shall be treated as obligations subject to the limitations imposed by § 6.2-875; and
3. Upon the expiration of any lease whether by virtue of the lease agreement or by virtue of the retaking of possession by the bank, the personal property shall be sold or otherwise disposed of, or charged off within one year from the time of expiration of such lease unless it is held for the purpose of reletting.
C. No personal property acquired pursuant to this section shall be included in computable investment in fixed assets under § 6.2-870.
History
This law was first created in 1968. The record of its establishment is cataloged in chapter 56 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1968 “Acts” aren’t available online. It has been modified 2 times. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 482; in 2010, chapter 794.
1968, c. 56, § 6.1-68.1; 1989, c. 482; 2010, c. 794.