{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1142.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1142.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1142.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1142.html"}],"law_id":81364,"edition_id":1,"section_id":81364,"structure_id":14228,"section_number":"6.2-1142","catch_line":"Conversion of federal financial institution into state savings institution or state bank","history":"Code 1950, \u00a7\u00a7 6-201.45, 6-201.46, 6-201.47; 1960, c. 402; 1966, c. 584, \u00a7\u00a7 6.1-175, 6.1-176, 6.1-177; 1972, c. 796, \u00a7\u00a7 6.1-195.54, 6.1-195.55, 6.1-195.56; 1975, c. 129; 1985, c. 425, \u00a7\u00a7 6.1-194.35, 6.1-194.36, 6.1-194.37; 1991, c. 230, \u00a7\u00a7 6.1-194.126, 6.1-194.127, 6.1-194.128; 1995, c. 133; 2010, c. 794.","full_text":"A\n\nA federal financial institution doing business in the Commonwealth may become a state savings institution, and such a federal financial institution that is a stock institution may become a state bank, as follows:1\n\nIn either case, the federal financial institution shall take such action as will under federal law and regulations terminate its existence as a federal financial institution on a specified date;2\n\nIn the case of a conversion to a state savings institution, the directors of the federal financial institution shall organize a corporation under this chapter and, if a stock institution, the Virginia Stock Corporation Act (§ 13.1-601 et seq.), or if a mutual savings institution, the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-1118; and3\n\nIn the case of a conversion to a state bank, the directors of the federal financial institution shall organize a corporation under Chapter 8 (§ 6.2-800 et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-816. If the applicant meets the standards established by § 6.2-816, the Commission may issue it a certificate of authority to begin a banking business. The order shall designate the main office of the federal financial institution as the main office of the resulting bank, and the resulting bank shall be permitted to operate all branch offices of the former federal financial institution. Within one year of the date of such a conversion, the resulting bank shall conform its assets and operations to the provisions of law regulating the operation of banks. The Commission may grant such resulting bank additional one-year periods, not to exceed a total of four additional years, in which to conform its assets and operations to the provisions of law regulating the operation of banks.B\n\nThe former federal financial institution converting to a state savings institution or a state bank shall transact no business as a state savings institution or as a state bank other than that relating to its organization until its certificate of authority to do business has been granted and its dissolution as a federal financial institution has become effective.C\n\nAs soon as the certificate of authority to do business has been granted and its dissolution as a federal financial institution has become effective, all the property of the federal financial institution shall by operation of law and without any further act or deed be vested in and become the property of the state savings institution or state bank. The state savings institution or state bank shall (i) have, hold and enjoy the same in its own right as fully and to the same extent as the same was possessed, held or enjoyed by the federal financial institution and (ii) become, and continue to be, responsible for all the obligations, duties and agreements of the federal financial institution, including taxes and other liabilities created by law or incurred by it before becoming a state savings institution or state bank to the same extent as though the conversion had not taken place.D\n\nUpon conversion of a federal financial institution to a state savings bank, the state savings bank shall have the right to continue to operate all branch offices then in existence without having to obtain the approval of the Commission pursuant to § 6.2-1133.","order_by":null,"text":{"0":{"id":291590,"text":"A federal financial institution doing business in the Commonwealth may become a state savings institution, and such a federal financial institution that is a stock institution may become a state bank, as follows:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":291591,"text":"In either case, the federal financial institution shall take such action as will under federal law and regulations terminate its existence as a federal financial institution on a specified date;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":291592,"text":"In the case of a conversion to a state savings institution, the directors of the federal financial institution shall organize a corporation under this chapter and, if a stock institution, the Virginia Stock Corporation Act (§ 13.1-601 et seq.), or if a mutual savings institution, the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-1118; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":291593,"text":"In the case of a conversion to a state bank, the directors of the federal financial institution shall organize a corporation under Chapter 8 (§ 6.2-800 et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-816. If the applicant meets the standards established by § 6.2-816, the Commission may issue it a certificate of authority to begin a banking business. The order shall designate the main office of the federal financial institution as the main office of the resulting bank, and the resulting bank shall be permitted to operate all branch offices of the former federal financial institution. Within one year of the date of such a conversion, the resulting bank shall conform its assets and operations to the provisions of law regulating the operation of banks. The Commission may grant such resulting bank additional one-year periods, not to exceed a total of four additional years, in which to conform its assets and operations to the provisions of law regulating the operation of banks.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":291594,"text":"The former federal financial institution converting to a state savings institution or a state bank shall transact no business as a state savings institution or as a state bank other than that relating to its organization until its certificate of authority to do business has been granted and its dissolution as a federal financial institution has become effective.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":291595,"text":"As soon as the certificate of authority to do business has been granted and its dissolution as a federal financial institution has become effective, all the property of the federal financial institution shall by operation of law and without any further act or deed be vested in and become the property of the state savings institution or state bank. The state savings institution or state bank shall (i) have, hold and enjoy the same in its own right as fully and to the same extent as the same was possessed, held or enjoyed by the federal financial institution and (ii) become, and continue to be, responsible for all the obligations, duties and agreements of the federal financial institution, including taxes and other liabilities created by law or incurred by it before becoming a state savings institution or state bank to the same extent as though the conversion had not taken place.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"6":{"id":291596,"text":"Upon conversion of a federal financial institution to a state savings bank, the state savings bank shall have the right to continue to operate all branch offices then in existence without having to obtain the approval of the Commission pursuant to § 6.2-1133.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":14228,"edition_id":1,"name":"Conversions, Reorganizations, Mergers, and Acquisitions","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 03:47:23","date_modified":"2026-06-26 03:47:23","permalink":{"id":264265,"object_type":"structure","relational_id":14228,"identifier":"4","token":"6.2\/II\/11\/4","url":"\/6.2\/II\/11\/4\/","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":55893,"structure_id":14228,"section_number":"6.2-1139","catch_line":"Conversion from mutual savings institution to stock institution","url":"\/6.2-1139\/","token":"6.2\/II\/11\/4\/6.2-1139","metadata":false},{"id":77083,"structure_id":14228,"section_number":"6.2-1140","catch_line":"Reorganization of mutual association into mutual holding company; approval by Commissioner; powers; issuance of stock","url":"\/6.2-1140\/","token":"6.2\/II\/11\/4\/6.2-1140","metadata":false},{"id":68986,"structure_id":14228,"section_number":"6.2-1141","catch_line":"Conversion of state savings institution into federal financial institution","url":"\/6.2-1141\/","token":"6.2\/II\/11\/4\/6.2-1141","metadata":false},{"id":81364,"structure_id":14228,"section_number":"6.2-1142","catch_line":"Conversion of federal financial institution into state savings institution or state bank","url":"\/6.2-1142\/","token":"6.2\/II\/11\/4\/6.2-1142","metadata":false},{"id":61360,"structure_id":14228,"section_number":"6.2-1143","catch_line":"Conversion from state savings bank to state association; conversion from state association to state savings bank","url":"\/6.2-1143\/","token":"6.2\/II\/11\/4\/6.2-1143","metadata":false},{"id":66708,"structure_id":14228,"section_number":"6.2-1144","catch_line":"Conversion from stock savings institution to bank","url":"\/6.2-1144\/","token":"6.2\/II\/11\/4\/6.2-1144","metadata":false},{"id":75638,"structure_id":14228,"section_number":"6.2-1145","catch_line":"Merger or consolidation of savings institutions","url":"\/6.2-1145\/","token":"6.2\/II\/11\/4\/6.2-1145","metadata":false},{"id":65808,"structure_id":14228,"section_number":"6.2-1146","catch_line":"State association or association holding company acquiring bank; association acquired by bank or bank holding company; merger or consolidation of association and bank","url":"\/6.2-1146\/","token":"6.2\/II\/11\/4\/6.2-1146","metadata":false},{"id":55449,"structure_id":14228,"section_number":"6.2-1147","catch_line":"Acquisition of control of state stock institution requires Commission approval","url":"\/6.2-1147\/","token":"6.2\/II\/11\/4\/6.2-1147","metadata":false}],"previous_section":{"id":68986,"structure_id":14228,"section_number":"6.2-1141","catch_line":"Conversion of state savings institution into federal financial institution","url":"\/6.2-1141\/","token":"6.2\/II\/11\/4\/6.2-1141","metadata":false},"next_section":{"id":61360,"structure_id":14228,"section_number":"6.2-1143","catch_line":"Conversion from state savings bank to state association; conversion from state association to state savings bank","url":"\/6.2-1143\/","token":"6.2\/II\/11\/4\/6.2-1143","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1142\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 8 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 1972, chapter 796; in 1975, chapter 129; in 1985, chapter 425; in 1991, chapter 230; in 1995, chapter 133<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":[{"id":62759,"section_number":"13.1-601","catch_line":"Short title","order_by":null,"url":"\/13.1-601\/"},{"id":76305,"section_number":"13.1-801","catch_line":"Short title","order_by":null,"url":"\/13.1-801\/"},{"id":57320,"section_number":"6.2-1118","catch_line":"Certificate of authority to do business","order_by":null,"url":"\/6.2-1118\/"},{"id":68879,"section_number":"6.2-1133","catch_line":"Offices and other facilities of state and foreign savings institutions; approval of branch offices required","order_by":null,"url":"\/6.2-1133\/"},{"id":86656,"section_number":"6.2-800","catch_line":"Definitions","order_by":null,"url":"\/6.2-800\/"},{"id":72786,"section_number":"6.2-816","catch_line":"Banks to obtain certificate of authority","order_by":null,"url":"\/6.2-816\/"}],"permalink":{"id":264279,"object_type":"law","relational_id":81364,"identifier":"6.2-1142","token":"6.2\/II\/11\/4\/6.2-1142","url":"\/6.2-1142\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1142\/","token":"6.2\/II\/11\/4\/6.2-1142","dublin_core":{"Title":"Conversion of federal financial institution into state savings institution or state bank","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1142","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A federal financial institution<\/span> doing business in the Commonwealth may become a state savings institution<\/span>, and such a federal financial institution<\/span> that is a stock institution<\/span> may become a state bank<\/span>, as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In either case, the federal financial institution<\/span> shall take such action as will under federal law<\/span> and regulations terminate its existence as a federal financial institution<\/span> on a specified date; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the case of a conversion to a state savings institution<\/span>, the directors of the federal financial institution<\/span> shall organize a corporation under this chapter and, if a stock institution<\/span>, the Virginia Stock Corporation Act (§ 13.1-601<\/a> et seq.), or if a mutual savings institution<\/span>, the Virginia Nonstock Corporation Act (§ 13.1-801<\/a> et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-1118<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In the case of a conversion to a state bank<\/span>, the directors of the federal financial institution<\/span> shall organize a corporation under Chapter 8 (§ 6.2-800<\/a> et seq.) and the Virginia Stock Corporation Act (§ 13.1-601<\/a> et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.2-816<\/a>. If the applicant meets the standards established by § 6.2-816<\/a>, the Commission<\/span> may issue<\/span> it a certificate of authority to begin a banking business. The order<\/span> shall designate the main office<\/span> of the federal financial institution<\/span> as the main office<\/span> of the resulting bank, and the resulting bank shall be permitted to operate all branch offices<\/span> of the former federal financial institution<\/span>. Within one year of the date of such a conversion, the resulting bank shall conform its assets<\/span> and operations to the provisions of law<\/span> regulating the operation of banks. The Commission<\/span> may grant such resulting bank additional one-year periods, not to exceed a total of four additional years, in which to conform its assets<\/span> and operations to the provisions of law<\/span> regulating the operation of banks. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The former federal financial institution<\/span> converting to a state savings institution<\/span> or a state bank<\/span> shall transact no business as a state savings institution<\/span> or as a state bank<\/span> other than that relating to its organization until its certificate of authority to do business has been granted and its dissolution as a federal financial institution<\/span> has become effective. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> As soon as the certificate of authority to do business has been granted and its dissolution as a federal financial institution<\/span> has become effective, all the property of the federal financial institution<\/span> shall by operation of law<\/span> and without any further act or deed be vested in and become the property of the state savings institution<\/span> or state bank<\/span>. The state savings institution<\/span> or state bank<\/span> shall (i) have, hold and enjoy the same in its own right as fully and to the same extent as the same was possessed, held or enjoyed by the federal financial institution<\/span> and (ii) become, and continue to be, responsible for all the obligations, duties and agreements of the federal financial institution<\/span>, including taxes and other liabilities created by law<\/span> or incurred by it before becoming a state savings institution<\/span> or state bank<\/span> to the same extent as though the conversion had not taken place. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Upon conversion of a federal financial institution<\/span> to a state savings bank<\/span>, the state savings bank<\/span> shall have the right to continue to operate all branch offices<\/span> then in existence without having to obtain the approval of the Commission<\/span> pursuant to § 6.2-1133<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCONVERSION OF FEDERAL FINANCIAL INSTITUTION INTO STATE SAVINGS INSTITUTION OR\nSTATE BANK (\u00a7 6.2-1142)\n\nA. A federal financial institution doing business in the Commonwealth may become\na state savings institution, and such a federal financial institution that is a\nstock institution may become a state bank, as follows:\n\n 1. In either case, the federal financial institution shall take such action as\n will under federal law and regulations terminate its existence as a federal\n financial institution on a specified date;\n\n 2. In the case of a conversion to a state savings institution, the directors\n of the federal financial institution shall organize a corporation under this\n chapter and, if a stock institution, the Virginia Stock Corporation Act\n (§ 13.1-601 et seq.), or if a mutual savings institution, the Virginia\n Nonstock Corporation Act (§ 13.1-801 et seq.), and the new corporation\n shall apply for a certificate of authority to do business under §\n 6.2-1118; and\n\n 3. In the case of a conversion to a state bank, the directors of the federal\n financial institution shall organize a corporation under Chapter 8 (§\n 6.2-800 et seq.) and the Virginia Stock Corporation Act (§ 13.1-601 et\n seq.), and the new corporation shall apply for a certificate of authority to\n do business under § 6.2-816. If the applicant meets the standards\n established by § 6.2-816, the Commission may issue it a certificate of\n authority to begin a banking business. The order shall designate the main\n office of the federal financial institution as the main office of the\n resulting bank, and the resulting bank shall be permitted to operate all\n branch offices of the former federal financial institution. Within one year of\n the date of such a conversion, the resulting bank shall conform its assets and\n operations to the provisions of law regulating the operation of banks. The\n Commission may grant such resulting bank additional one-year periods, not to\n exceed a total of four additional years, in which to conform its assets and\n operations to the provisions of law regulating the operation of banks.\n\nB. The former federal financial institution converting to a state savings\ninstitution or a state bank shall transact no business as a state savings\ninstitution or as a state bank other than that relating to its organization\nuntil its certificate of authority to do business has been granted and its\ndissolution as a federal financial institution has become effective.\n\nC. As soon as the certificate of authority to do business has been granted and\nits dissolution as a federal financial institution has become effective, all the\nproperty of the federal financial institution shall by operation of law and\nwithout any further act or deed be vested in and become the property of the\nstate savings institution or state bank. The state savings institution or state\nbank shall (i) have, hold and enjoy the same in its own right as fully and to\nthe same extent as the same was possessed, held or enjoyed by the federal\nfinancial institution and (ii) become, and continue to be, responsible for all\nthe obligations, duties and agreements of the federal financial institution,\nincluding taxes and other liabilities created by law or incurred by it before\nbecoming a state savings institution or state bank to the same extent as though\nthe conversion had not taken place.\n\nD. Upon conversion of a federal financial institution to a state savings bank,\nthe state savings bank shall have the right to continue to operate all branch\noffices then in existence without having to obtain the approval of the\nCommission pursuant to § 6.2-1133.\n\nHISTORY: Code 1950, \u00a7\u00a7 6-201.45, 6-201.46, 6-201.47; 1960, c. 402; 1966, c.\n584, \u00a7\u00a7 6.1-175, 6.1-176, 6.1-177; 1972, c. 796, \u00a7\u00a7 6.1-195.54, 6.1-195.55,\n6.1-195.56; 1975, c. 129; 1985, c. 425, \u00a7\u00a7 6.1-194.35, 6.1-194.36, 6.1-194.37;\n1991, c. 230, \u00a7\u00a7 6.1-194.126, 6.1-194.127, 6.1-194.128; 1995, c. 133; 2010, c.\n794.","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}}