{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1130.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1130.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1130.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1130.html"}],"law_id":63419,"edition_id":1,"section_id":63419,"structure_id":14426,"section_number":"6.2-1130","catch_line":"Reserves; surplus and undivided profits","history":"Code 1950, \u00a7 6-201.28; 1960, c. 402; 1966, c. 584, \u00a7 6.1-156; 1968, c. 256; 1972, c. 796, \u00a7 6.1-195.33; 1973, c. 133; 1985, c. 425, \u00a7 6.1-194.23; 1986, c. 500; 1990, c. 3; 2010, c. 794.","full_text":"A\n\nEvery savings institution doing business in the Commonwealth shall maintain an adequate net worth appropriate for the conduct of its business and the protection of its account holders. Every savings institution (i) shall set up and maintain the reserves required by this chapter and (ii) may set up and maintain such additional reserves as are permitted by this chapter.B\n\nOn or before the closing date of each accounting period, after payment of or provision for all expenses, every savings institution shall transfer to a separate reserve account that shall be set up and maintained for the sole purpose of absorbing losses, referred to in this section as the “general reserve,” an amount equal to at least five percent of its net income. A savings institution that at the close of such accounting period has assets in excess of $20 million or that has done business as a savings institution in the Commonwealth for more than 20 years shall transfer to such separate reserve account the greater of five percent of its net income or an amount obtained by subtracting an amount equal to its general reserve at the beginning of the period from an amount equal to four percent of its assets, excluding liquid assets, at the end of the period, until the general reserve is equal to at least five percent of the total amount of its deposit accounts at the beginning of such accounting period. Upon advanced written application of a savings institution, the Commissioner may approve the transfer to the general reserve of a lesser amount for such accounting period. If any credit to the general reserve is made after July 1, 1985, in excess of the minimum requirement, the dollar amount of any such excess may be carried over as a credit toward the minimum requirement of any subsequent period.C\n\nWhen the general reserve of a savings institution does not equal at least five percent of the deposit account liability of the institution, credits, as provided in subsection B, shall again be made to the general reserve until it again equals at least five percent of the institution’s deposit account liability.D\n\nIn the case of stock savings institutions, the capital stock account, to the extent that the capital has not been impaired, shall be treated as part of the reserve and the board of directors may, by resolution, permanently or conditionally designate all or part of the capital stock, capital surplus, earned surplus, or undivided profit accounts as a part of its general reserve. A savings institution may retain its undivided profits in such amounts as may from time to time be fixed by resolution of its board of directors.E\n\nThe Commission may temporarily reduce the reserve requirements for a savings institution if it finds such reduction to be in the best interest of the institution and its stockholders or members.F\n\nNotwithstanding the requirements of this section, an insured savings institution may maintain its reserves in accordance with the requirements of the Federal Deposit Insurance Corporation or other federal agency.","order_by":null,"text":{"0":{"id":231125,"text":"Every savings institution doing business in the Commonwealth shall maintain an adequate net worth appropriate for the conduct of its business and the protection of its account holders. Every savings institution (i) shall set up and maintain the reserves required by this chapter and (ii) may set up and maintain such additional reserves as are permitted by this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":231126,"text":"On or before the closing date of each accounting period, after payment of or provision for all expenses, every savings institution shall transfer to a separate reserve account that shall be set up and maintained for the sole purpose of absorbing losses, referred to in this section as the “general reserve,” an amount equal to at least five percent of its net income. A savings institution that at the close of such accounting period has assets in excess of $20 million or that has done business as a savings institution in the Commonwealth for more than 20 years shall transfer to such separate reserve account the greater of five percent of its net income or an amount obtained by subtracting an amount equal to its general reserve at the beginning of the period from an amount equal to four percent of its assets, excluding liquid assets, at the end of the period, until the general reserve is equal to at least five percent of the total amount of its deposit accounts at the beginning of such accounting period. Upon advanced written application of a savings institution, the Commissioner may approve the transfer to the general reserve of a lesser amount for such accounting period. If any credit to the general reserve is made after July 1, 1985, in excess of the minimum requirement, the dollar amount of any such excess may be carried over as a credit toward the minimum requirement of any subsequent period.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":231127,"text":"When the general reserve of a savings institution does not equal at least five percent of the deposit account liability of the institution, credits, as provided in subsection B, shall again be made to the general reserve until it again equals at least five percent of the institution’s deposit account liability.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":231128,"text":"In the case of stock savings institutions, the capital stock account, to the extent that the capital has not been impaired, shall be treated as part of the reserve and the board of directors may, by resolution, permanently or conditionally designate all or part of the capital stock, capital surplus, earned surplus, or undivided profit accounts as a part of its general reserve. A savings institution may retain its undivided profits in such amounts as may from time to time be fixed by resolution of its board of directors.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":231129,"text":"The Commission may temporarily reduce the reserve requirements for a savings institution if it finds such reduction to be in the best interest of the institution and its stockholders or members.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":231130,"text":"Notwithstanding the requirements of this section, an insured savings institution may maintain its reserves in accordance with the requirements of the Federal Deposit Insurance Corporation or other federal agency.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14426,"edition_id":1,"name":"Incorporation; Certificate of Authority; Corporate Administration","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 03:48:06","date_modified":"2026-06-26 03:48:06","permalink":{"id":264161,"object_type":"structure","relational_id":14426,"identifier":"2","token":"6.2\/II\/11\/2","url":"\/6.2\/II\/11\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13490,"edition_id":1,"name":"Savings Institutions","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:01","date_modified":"2026-06-26 03:45:01","permalink":{"id":264101,"object_type":"structure","relational_id":13490,"identifier":"11","token":"6.2\/II\/11","url":"\/6.2\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67165,"structure_id":14426,"section_number":"6.2-1114","catch_line":"Application of Virginia Stock Corporation Act and Virginia Nonstock Corporation Act","url":"\/6.2-1114\/","token":"6.2\/II\/11\/2\/6.2-1114","metadata":false},{"id":67065,"structure_id":14426,"section_number":"6.2-1115","catch_line":"Formation of state savings institutions","url":"\/6.2-1115\/","token":"6.2\/II\/11\/2\/6.2-1115","metadata":false},{"id":55786,"structure_id":14426,"section_number":"6.2-1116","catch_line":"Corporation name","url":"\/6.2-1116\/","token":"6.2\/II\/11\/2\/6.2-1116","metadata":false},{"id":86871,"structure_id":14426,"section_number":"6.2-1117","catch_line":"Par value of shares; payment of shares; reacquisitions of shares or acceptance thereof as security; how subscriptions to stock to be paid; disposition of money received before institution opens; stock option plans","url":"\/6.2-1117\/","token":"6.2\/II\/11\/2\/6.2-1117","metadata":false},{"id":57320,"structure_id":14426,"section_number":"6.2-1118","catch_line":"Certificate of authority to do business","url":"\/6.2-1118\/","token":"6.2\/II\/11\/2\/6.2-1118","metadata":false},{"id":83031,"structure_id":14426,"section_number":"6.2-1119","catch_line":"Commissions and other fees for sale of stock not permitted","url":"\/6.2-1119\/","token":"6.2\/II\/11\/2\/6.2-1119","metadata":false},{"id":73082,"structure_id":14426,"section_number":"6.2-1120","catch_line":"Minimum capital requirement","url":"\/6.2-1120\/","token":"6.2\/II\/11\/2\/6.2-1120","metadata":false},{"id":79467,"structure_id":14426,"section_number":"6.2-1121","catch_line":"Board of directors","url":"\/6.2-1121\/","token":"6.2\/II\/11\/2\/6.2-1121","metadata":false},{"id":82570,"structure_id":14426,"section_number":"6.2-1122","catch_line":"Meetings of board of directors","url":"\/6.2-1122\/","token":"6.2\/II\/11\/2\/6.2-1122","metadata":false},{"id":78474,"structure_id":14426,"section_number":"6.2-1123","catch_line":"Notice of meetings of members; determining members entitled to notice or to vote","url":"\/6.2-1123\/","token":"6.2\/II\/11\/2\/6.2-1123","metadata":false},{"id":73534,"structure_id":14426,"section_number":"6.2-1124","catch_line":"Voting rights; proxies","url":"\/6.2-1124\/","token":"6.2\/II\/11\/2\/6.2-1124","metadata":false},{"id":84832,"structure_id":14426,"section_number":"6.2-1125","catch_line":"Access to books and records; communication with members","url":"\/6.2-1125\/","token":"6.2\/II\/11\/2\/6.2-1125","metadata":false},{"id":69406,"structure_id":14426,"section_number":"6.2-1126","catch_line":"Audit of savings institution; report","url":"\/6.2-1126\/","token":"6.2\/II\/11\/2\/6.2-1126","metadata":false},{"id":82490,"structure_id":14426,"section_number":"6.2-1127","catch_line":"Bonds of officers and employees","url":"\/6.2-1127\/","token":"6.2\/II\/11\/2\/6.2-1127","metadata":false},{"id":70597,"structure_id":14426,"section_number":"6.2-1128","catch_line":"Loans to executive officers or directors","url":"\/6.2-1128\/","token":"6.2\/II\/11\/2\/6.2-1128","metadata":false},{"id":74367,"structure_id":14426,"section_number":"6.2-1129","catch_line":"Overdrafts by savings institution officers, directors or employees","url":"\/6.2-1129\/","token":"6.2\/II\/11\/2\/6.2-1129","metadata":false},{"id":63419,"structure_id":14426,"section_number":"6.2-1130","catch_line":"Reserves; surplus and undivided profits","url":"\/6.2-1130\/","token":"6.2\/II\/11\/2\/6.2-1130","metadata":false},{"id":56309,"structure_id":14426,"section_number":"6.2-1131","catch_line":"Liability of members of mutual savings institutions","url":"\/6.2-1131\/","token":"6.2\/II\/11\/2\/6.2-1131","metadata":false},{"id":60084,"structure_id":14426,"section_number":"6.2-1132","catch_line":"Mutual capital certificates","url":"\/6.2-1132\/","token":"6.2\/II\/11\/2\/6.2-1132","metadata":false}],"previous_section":{"id":74367,"structure_id":14426,"section_number":"6.2-1129","catch_line":"Overdrafts by savings institution officers, directors or employees","url":"\/6.2-1129\/","token":"6.2\/II\/11\/2\/6.2-1129","metadata":false},"next_section":{"id":56309,"structure_id":14426,"section_number":"6.2-1131","catch_line":"Liability of members of mutual savings institutions","url":"\/6.2-1131\/","token":"6.2\/II\/11\/2\/6.2-1131","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1130\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 9 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1960, chapter 402; in 1966, chapter 584; in 1968, chapter 256; in 1972, chapter 796; in 1973, chapter 133; in 1985, chapter 425; in 1986, chapter 500; in 1990, chapter 3; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":264227,"object_type":"law","relational_id":63419,"identifier":"6.2-1130","token":"6.2\/II\/11\/2\/6.2-1130","url":"\/6.2-1130\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1130\/","token":"6.2\/II\/11\/2\/6.2-1130","dublin_core":{"Title":"Reserves; surplus and undivided profits","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1130","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every savings institution<\/span> doing business in the Commonwealth shall maintain an adequate net worth appropriate for the conduct of its business and the protection of its account<\/span> holders. Every savings institution<\/span> (i) shall set up and maintain the reserves required by this chapter and (ii) may set up and maintain such additional reserves as are permitted by this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> On or before the closing date of each accounting period, after payment of or provision for all expenses, every savings institution<\/span> shall transfer to a separate reserve account<\/span> that shall be set up and maintained for the sole purpose of absorbing losses, referred to in this section as the “general reserve,” an amount equal to at least five percent of its net income. A savings institution<\/span> that at the close of such accounting period has assets in excess of $20 million or that has done business as a savings institution<\/span> in the Commonwealth for more than 20 years shall transfer to such separate reserve account<\/span> the greater of five percent of its net income or an amount obtained by subtracting an amount equal to its general reserve at the beginning of the period from an amount equal to four percent of its assets, excluding liquid assets<\/span>, at the end of the period, until the general reserve is equal to at least five percent of the total amount of its deposit accounts<\/span> at the beginning of such accounting period. Upon advanced written application of a savings institution<\/span>, the Commissioner<\/span> may approve the transfer to the general reserve of a lesser amount for such accounting period. If any credit to the general reserve is made after July 1, 1985, in excess of the minimum requirement, the dollar amount of any such excess may be carried over as a credit toward the minimum requirement of any subsequent period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> When the general reserve of a savings institution<\/span> does not equal at least five percent of the deposit account<\/span> liability of the institution, credits, as provided in subsection B, shall again be made to the general reserve until it again equals at least five percent of the institution’s deposit account<\/span> liability. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In the case of stock savings institutions<\/span>, the capital stock account<\/span>, to the extent that the capital has not been impaired, shall be treated as part of the reserve and the board of directors may, by resolution, permanently or conditionally designate all or part of the capital stock, capital surplus, earned surplus, or undivided profit accounts<\/span> as a part of its general reserve. A savings institution<\/span> may retain its undivided profits in such amounts as may from time to time be fixed by resolution of its board of directors. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Commission<\/span> may temporarily reduce the reserve requirements for a savings institution<\/span> if it finds such reduction to be in the best interest of the institution and its stockholders or members<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Notwithstanding the requirements of this section, an insured savings institution<\/span> may maintain its reserves in accordance with the requirements of the Federal Deposit Insurance Corporation or other federal agency. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRESERVES; SURPLUS AND UNDIVIDED PROFITS (\u00a7 6.2-1130)\n\nA. Every savings institution doing business in the Commonwealth shall maintain\nan adequate net worth appropriate for the conduct of its business and the\nprotection of its account holders. Every savings institution (i) shall set up\nand maintain the reserves required by this chapter and (ii) may set up and\nmaintain such additional reserves as are permitted by this chapter.\n\nB. On or before the closing date of each accounting period, after payment of or\nprovision for all expenses, every savings institution shall transfer to a\nseparate reserve account that shall be set up and maintained for the sole\npurpose of absorbing losses, referred to in this section as the “general\nreserve,” an amount equal to at least five percent of its net income. A\nsavings institution that at the close of such accounting period has assets in\nexcess of $20 million or that has done business as a savings institution in the\nCommonwealth for more than 20 years shall transfer to such separate reserve\naccount the greater of five percent of its net income or an amount obtained by\nsubtracting an amount equal to its general reserve at the beginning of the\nperiod from an amount equal to four percent of its assets, excluding liquid\nassets, at the end of the period, until the general reserve is equal to at least\nfive percent of the total amount of its deposit accounts at the beginning of\nsuch accounting period. Upon advanced written application of a savings\ninstitution, the Commissioner may approve the transfer to the general reserve of\na lesser amount for such accounting period. If any credit to the general reserve\nis made after July 1, 1985, in excess of the minimum requirement, the dollar\namount of any such excess may be carried over as a credit toward the minimum\nrequirement of any subsequent period.\n\nC. When the general reserve of a savings institution does not equal at least\nfive percent of the deposit account liability of the institution, credits, as\nprovided in subsection B, shall again be made to the general reserve until it\nagain equals at least five percent of the institution’s deposit account\nliability.\n\nD. In the case of stock savings institutions, the capital stock account, to the\nextent that the capital has not been impaired, shall be treated as part of the\nreserve and the board of directors may, by resolution, permanently or\nconditionally designate all or part of the capital stock, capital surplus,\nearned surplus, or undivided profit accounts as a part of its general reserve. A\nsavings institution may retain its undivided profits in such amounts as may from\ntime to time be fixed by resolution of its board of directors.\n\nE. The Commission may temporarily reduce the reserve requirements for a savings\ninstitution if it finds such reduction to be in the best interest of the\ninstitution and its stockholders or members.\n\nF. Notwithstanding the requirements of this section, an insured savings\ninstitution may maintain its reserves in accordance with the requirements of the\nFederal Deposit Insurance Corporation or other federal agency.\n\nHISTORY: Code 1950, \u00a7 6-201.28; 1960, c. 402; 1966, c. 584, \u00a7 6.1-156; 1968,\nc. 256; 1972, c. 796, \u00a7 6.1-195.33; 1973, c. 133; 1985, c. 425, \u00a7 6.1-194.23;\n1986, c. 500; 1990, c. 3; 2010, c. 794.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}