{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-862.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-862.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-862.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-862.html"}],"law_id":64096,"edition_id":1,"section_id":64096,"structure_id":13792,"section_number":"6.2-862","catch_line":"Directors to own stock in bank","history":"Code 1950, \u00a7 6-37; 1966, c. 584, \u00a7 6.1-47; 1970, c. 95; 1995, c. 63; 1996, cc. 25, 218; 2010, c. 794; 2014, cc. 156, 219; 2018, cc. 76, 262.","full_text":"A\n\nAs used in this section, “bank holding company” means (i) a bank holding company as defined in § 6.2-800 or (ii) any corporation organized under the laws of the Commonwealth and doing business in the Commonwealth that owns all of the capital stock of one bank, except those shares issued as directors’ qualifying shares, and at least 66 and two-thirds percent of the assets of the holding company, computed on a consolidated basis, consists of assets held by such bank and controlled subsidiaries of such bank.B\n\nEvery director of a bank incorporated under the laws of the Commonwealth shall be the sole owner of, and have in his personal possession or control, shares of stock in such bank having a book value of not less than $5,000, calculated as of the last business day of the calendar year immediately preceding the election of the director. So long as a director shall successively be reelected, there shall be no requirement to increase the shares of stock owned according to this section. Such stock shall be unpledged and unencumbered at the time such director becomes a director and during the whole of his term as such. A director shall be deemed to be the sole owner of, and have in his personal possession or control:1\n\nShares held through a brokerage account or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares;2\n\nShares held jointly or as a tenant in common, but only to the extent of the book value of the shares divided by the number of joint or tenant in common holders;3\n\nShares deposited by the director in a living trust, or inter vivos trust, as to which the director is a trustee and retains an absolute power of revocation; or4\n\nShares held through a profit-sharing plan, individual retirement account, retirement plan, or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares.C\n\nWhen a bank is controlled by a bank holding company, a director may comply with the requirements of subsection B for each bank of which he is a director by ownership, in similar manner, of shares of capital stock of the bank holding company having an aggregate book value equal to the book value of shares of bank stock that he would be obligated to own under subsection B.D\n\nA director of a bankers’ bank shall not be required to own or control any shares of stock of such bankers’ bank or any shares of stock of a bank holding company that controls such bankers’ bank.E\n\nAny director violating the provisions of this section shall, immediately, vacate his office.F\n\nThe requirements of this section shall not apply to any person duly elected a director of a bank prior to July 1, 1995, or so long as such person shall successively be reelected a director, and as to such person the requirements of the law prior to such date shall apply.","order_by":null,"text":{"0":{"id":233372,"text":"As used in this section, “bank holding company” means (i) a bank holding company as defined in § 6.2-800 or (ii) any corporation organized under the laws of the Commonwealth and doing business in the Commonwealth that owns all of the capital stock of one bank, except those shares issued as directors’ qualifying shares, and at least 66 and two-thirds percent of the assets of the holding company, computed on a consolidated basis, consists of assets held by such bank and controlled subsidiaries of such bank.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":233373,"text":"Every director of a bank incorporated under the laws of the Commonwealth shall be the sole owner of, and have in his personal possession or control, shares of stock in such bank having a book value of not less than $5,000, calculated as of the last business day of the calendar year immediately preceding the election of the director. So long as a director shall successively be reelected, there shall be no requirement to increase the shares of stock owned according to this section. Such stock shall be unpledged and unencumbered at the time such director becomes a director and during the whole of his term as such. A director shall be deemed to be the sole owner of, and have in his personal possession or control:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":233374,"text":"Shares held through a brokerage account or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":233375,"text":"Shares held jointly or as a tenant in common, but only to the extent of the book value of the shares divided by the number of joint or tenant in common holders;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":233376,"text":"Shares deposited by the director in a living trust, or inter vivos trust, as to which the director is a trustee and retains an absolute power of revocation; or","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":233377,"text":"Shares held through a profit-sharing plan, individual retirement account, retirement plan, or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":233378,"text":"When a bank is controlled by a bank holding company, a director may comply with the requirements of subsection B for each bank of which he is a director by ownership, in similar manner, of shares of capital stock of the bank holding company having an aggregate book value equal to the book value of shares of bank stock that he would be obligated to own under subsection B.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"D"},"7":{"id":233379,"text":"A director of a bankers’ bank shall not be required to own or control any shares of stock of such bankers’ bank or any shares of stock of a bank holding company that controls such bankers’ bank.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"8":{"id":233380,"text":"Any director violating the provisions of this section shall, immediately, vacate his office.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"9":{"id":233381,"text":"The requirements of this section shall not apply to any person duly elected a director of a bank prior to July 1, 1995, or so long as such person shall successively be reelected a director, and as to such person the requirements of the law prior to such date shall apply.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13792,"edition_id":1,"name":"Directors and Officers; Dividends","identifier":"8","label":"article","depth":4,"order_by":1,"parent_id":13791,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265601,"object_type":"structure","relational_id":13792,"identifier":"8","token":"6.2\/II\/8\/8","url":"\/6.2\/II\/8\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13791,"edition_id":1,"name":"Banks","identifier":"8","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265065,"object_type":"structure","relational_id":13791,"identifier":"8","token":"6.2\/II\/8","url":"\/6.2\/II\/8\/","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":72617,"structure_id":13792,"section_number":"6.2-860","catch_line":"Bank to be managed by board of directors; number of directors","url":"\/6.2-860\/","token":"6.2\/II\/8\/8\/6.2-860","metadata":false},{"id":84782,"structure_id":13792,"section_number":"6.2-861","catch_line":"Application of Virginia Stock Corporation Act","url":"\/6.2-861\/","token":"6.2\/II\/8\/8\/6.2-861","metadata":false},{"id":64096,"structure_id":13792,"section_number":"6.2-862","catch_line":"Directors to own stock in bank","url":"\/6.2-862\/","token":"6.2\/II\/8\/8\/6.2-862","metadata":false},{"id":75199,"structure_id":13792,"section_number":"6.2-863","catch_line":"Oaths of directors","url":"\/6.2-863\/","token":"6.2\/II\/8\/8\/6.2-863","metadata":false},{"id":72831,"structure_id":13792,"section_number":"6.2-864","catch_line":"Report to Commission of election of director","url":"\/6.2-864\/","token":"6.2\/II\/8\/8\/6.2-864","metadata":false},{"id":63998,"structure_id":13792,"section_number":"6.2-865","catch_line":"Removal of director or officer; appeals; penalty","url":"\/6.2-865\/","token":"6.2\/II\/8\/8\/6.2-865","metadata":false},{"id":56603,"structure_id":13792,"section_number":"6.2-866","catch_line":"Meetings of board of directors","url":"\/6.2-866\/","token":"6.2\/II\/8\/8\/6.2-866","metadata":false},{"id":63140,"structure_id":13792,"section_number":"6.2-867","catch_line":"Discount by officer, director, or employee of paper refused by bank","url":"\/6.2-867\/","token":"6.2\/II\/8\/8\/6.2-867","metadata":false},{"id":70091,"structure_id":13792,"section_number":"6.2-868","catch_line":"Bonds required of officers and employees; blanket bond","url":"\/6.2-868\/","token":"6.2\/II\/8\/8\/6.2-868","metadata":false},{"id":54800,"structure_id":13792,"section_number":"6.2-869","catch_line":"Dividends; surplus; undivided profits","url":"\/6.2-869\/","token":"6.2\/II\/8\/8\/6.2-869","metadata":false}],"previous_section":{"id":84782,"structure_id":13792,"section_number":"6.2-861","catch_line":"Application of Virginia Stock Corporation Act","url":"\/6.2-861\/","token":"6.2\/II\/8\/8\/6.2-861","metadata":false},"next_section":{"id":75199,"structure_id":13792,"section_number":"6.2-863","catch_line":"Oaths of directors","url":"\/6.2-863\/","token":"6.2\/II\/8\/8\/6.2-863","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-862\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 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 1966, chapter 584; in 1970, chapter 95; in 1995, chapter 63<\/a>; in 1996, chapters 25<\/a> and 218<\/a>; in 2010, chapter 794<\/a>; in 2014, chapters 156<\/a> and 219<\/a>; in 2018, chapters 76<\/a> and 262<\/a>.<\/p>","references":[{"id":75199,"section_number":"6.2-863","catch_line":"Oaths of directors","order_by":null,"url":"\/6.2-863\/"}],"refers_to":[{"id":86656,"section_number":"6.2-800","catch_line":"Definitions","order_by":null,"url":"\/6.2-800\/"}],"permalink":{"id":265611,"object_type":"law","relational_id":64096,"identifier":"6.2-862","token":"6.2\/II\/8\/8\/6.2-862","url":"\/6.2-862\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-862\/","token":"6.2\/II\/8\/8\/6.2-862","dublin_core":{"Title":"Directors to own stock in bank","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-862","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “bank holding company<\/span>” means (i) a bank holding company<\/span> as defined in § 6.2-800<\/a> or (ii) any corporation organized under the laws<\/span> of the Commonwealth and doing business in the Commonwealth that owns all of the capital stock of one bank, except those shares issued as directors’ qualifying shares, and at least 66 and two-thirds percent of the assets<\/span> of the holding company, computed on a consolidated basis, consists of assets<\/span> held by such bank and controlled subsidiaries of such bank. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Every director of a bank incorporated under the laws<\/span> of the Commonwealth shall be the sole owner of, and have in his personal possession<\/span> or control, shares of stock in such bank having a book value of not less than $5,000, calculated as of the last business day of the calendar year immediately preceding the election of the director. So long as a director shall successively be reelected, there shall be no requirement to increase the shares of stock owned according to this section. Such stock shall be unpledged and unencumbered at the time such director becomes a director and during the whole of his term as such. A director shall be deemed to be the sole owner of, and have in his personal possession<\/span> or control: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Shares held through a brokerage account or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Shares held jointly or as a tenant in common, but only to the extent of the book value of the shares divided by the number of joint or tenant in common holders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Shares deposited by the director in a living trust, or inter vivos trust, as to which the director is a trustee and retains an absolute power of revocation<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Shares held through a profit-sharing plan, individual retirement account, retirement plan, or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> When a bank is controlled by a bank holding company<\/span>, a director may comply with the requirements of subsection B for each bank of which he is a director by ownership, in similar manner, of shares of capital stock of the bank holding company<\/span> having an aggregate book value equal to the book value of shares of bank stock that he would be obligated to own under subsection B. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A director of a bankers’ bank shall not be required to own or control any shares of stock of such bankers’ bank or any shares of stock of a bank holding company<\/span> that controls such bankers’ bank. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any director violating the provisions of this section shall, immediately, vacate his office. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The requirements of this section shall not apply to any person<\/span> duly elected a director of a bank prior to July 1, 1995, or so long as such person<\/span> shall successively be reelected a director, and as to such person<\/span> the requirements of the law<\/span> prior to such date shall apply. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDIRECTORS TO OWN STOCK IN BANK (\u00a7 6.2-862)\n\nA. As used in this section, “bank holding company” means (i) a bank\nholding company as defined in § 6.2-800 or (ii) any corporation organized\nunder the laws of the Commonwealth and doing business in the Commonwealth that\nowns all of the capital stock of one bank, except those shares issued as\ndirectors’ qualifying shares, and at least 66 and two-thirds percent of\nthe assets of the holding company, computed on a consolidated basis, consists of\nassets held by such bank and controlled subsidiaries of such bank.\n\nB. Every director of a bank incorporated under the laws of the Commonwealth\nshall be the sole owner of, and have in his personal possession or control,\nshares of stock in such bank having a book value of not less than $5,000,\ncalculated as of the last business day of the calendar year immediately\npreceding the election of the director. So long as a director shall successively\nbe reelected, there shall be no requirement to increase the shares of stock\nowned according to this section. Such stock shall be unpledged and unencumbered\nat the time such director becomes a director and during the whole of his term as\nsuch. A director shall be deemed to be the sole owner of, and have in his\npersonal possession or control:\n\n 1. Shares held through a brokerage account or similar arrangement, provided\n that the director retains sole beneficial ownership and sole legal control\n over the shares;\n\n 2. Shares held jointly or as a tenant in common, but only to the extent of the\n book value of the shares divided by the number of joint or tenant in common\n holders;\n\n 3. Shares deposited by the director in a living trust, or inter vivos trust,\n as to which the director is a trustee and retains an absolute power of\n revocation; or\n\n 4. Shares held through a profit-sharing plan, individual retirement account,\n retirement plan, or similar arrangement, provided that the director retains\n sole beneficial ownership and sole legal control over the shares.\n\nC. When a bank is controlled by a bank holding company, a director may comply\nwith the requirements of subsection B for each bank of which he is a director by\nownership, in similar manner, of shares of capital stock of the bank holding\ncompany having an aggregate book value equal to the book value of shares of bank\nstock that he would be obligated to own under subsection B.\n\nD. A director of a bankers’ bank shall not be required to own or control\nany shares of stock of such bankers’ bank or any shares of stock of a bank\nholding company that controls such bankers’ bank.\n\nE. Any director violating the provisions of this section shall, immediately,\nvacate his office.\n\nF. The requirements of this section shall not apply to any person duly elected a\ndirector of a bank prior to July 1, 1995, or so long as such person shall\nsuccessively be reelected a director, and as to such person the requirements of\nthe law prior to such date shall apply.\n\nHISTORY: Code 1950, \u00a7 6-37; 1966, c. 584, \u00a7 6.1-47; 1970, c. 95; 1995, c. 63;\n1996, cc. 25, 218; 2010, c. 794; 2014, cc. 156, 219; 2018, cc. 76, 262.","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}}