{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-886.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-886.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-886.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-886.html"}],"law_id":74671,"edition_id":1,"section_id":74671,"structure_id":14189,"section_number":"6.2-886","catch_line":"Regulation of controlled subsidiary corporations by Commission","history":"1968, c. 270, \u00a7 6.1-58.1; 1978, c. 797; 1988, c. 296; 1993, c. 64; 1997, c. 277; 1999, c. 60; 2001, c. 508; 2003, cc. 536, 558; 2010, c. 794.","full_text":"A\n\nA controlled subsidiary corporation shall be subject to audit and examination by the Commission whether or not it is an affiliate as defined in § 6.2-899. The controlled subsidiary corporation shall pay such examination fees as shall be imposed under § 6.2-908 for the examination of trust departments. If upon examination the Commission shall ascertain that the corporation is created or operated in violation of this section or that the manner of operation is detrimental to the business of the parent bank and its depositors, it may order the bank to dispose of all or part of its investment in such corporation upon such terms as the Commission may deem proper.B\n\nA controlled subsidiary may not merge or consolidate unless the surviving corporation is itself a controlled subsidiary corporation, or unless as a result of such merger or consolidation the bank divests itself of all stock or other securities that are held pursuant to the authority granted by this section.C\n\nThe Commission shall have the same powers over controlled subsidiary corporations as it has over banks under §§ 6.2-913, 6.2-915, 6.2-917, 6.2-918, and 6.2-919, excepting those controlled subsidiary corporations that have no state banks as stockholders.","order_by":null,"text":{"0":{"id":268393,"text":"A controlled subsidiary corporation shall be subject to audit and examination by the Commission whether or not it is an affiliate as defined in § 6.2-899. The controlled subsidiary corporation shall pay such examination fees as shall be imposed under § 6.2-908 for the examination of trust departments. If upon examination the Commission shall ascertain that the corporation is created or operated in violation of this section or that the manner of operation is detrimental to the business of the parent bank and its depositors, it may order the bank to dispose of all or part of its investment in such corporation upon such terms as the Commission may deem proper.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":268394,"text":"A controlled subsidiary may not merge or consolidate unless the surviving corporation is itself a controlled subsidiary corporation, or unless as a result of such merger or consolidation the bank divests itself of all stock or other securities that are held pursuant to the authority granted by this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":268395,"text":"The Commission shall have the same powers over controlled subsidiary corporations as it has over banks under §§ 6.2-913, 6.2-915, 6.2-917, 6.2-918, and 6.2-919, excepting those controlled subsidiary corporations that have no state banks as stockholders.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14189,"edition_id":1,"name":"Investments and Loans","identifier":"9","label":"article","depth":4,"order_by":1,"parent_id":13791,"metadata":{},"date_created":"2026-06-26 03:47:11","date_modified":"2026-06-26 03:47:11","permalink":{"id":265643,"object_type":"structure","relational_id":14189,"identifier":"9","token":"6.2\/II\/8\/9","url":"\/6.2\/II\/8\/9\/","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":63411,"structure_id":14189,"section_number":"6.2-870","catch_line":"Limitation of amount invested in bank premises","url":"\/6.2-870\/","token":"6.2\/II\/8\/9\/6.2-870","metadata":false},{"id":64130,"structure_id":14189,"section_number":"6.2-871","catch_line":"Investment in stock or securities of bank service corporations","url":"\/6.2-871\/","token":"6.2\/II\/8\/9\/6.2-871","metadata":false},{"id":61248,"structure_id":14189,"section_number":"6.2-872","catch_line":"For what purpose banks may purchase, hold, and convey real estate","url":"\/6.2-872\/","token":"6.2\/II\/8\/9\/6.2-872","metadata":false},{"id":74353,"structure_id":14189,"section_number":"6.2-873","catch_line":"Additional permissible investments in real estate","url":"\/6.2-873\/","token":"6.2\/II\/8\/9\/6.2-873","metadata":false},{"id":82541,"structure_id":14189,"section_number":"6.2-874","catch_line":"Prohibited uses of bank's own stock; other investments or loans","url":"\/6.2-874\/","token":"6.2\/II\/8\/9\/6.2-874","metadata":false},{"id":57173,"structure_id":14189,"section_number":"6.2-875","catch_line":"Limitations on obligations of borrowers","url":"\/6.2-875\/","token":"6.2\/II\/8\/9\/6.2-875","metadata":false},{"id":55367,"structure_id":14189,"section_number":"6.2-876","catch_line":"Loans to executive officers or directors","url":"\/6.2-876\/","token":"6.2\/II\/8\/9\/6.2-876","metadata":false},{"id":85468,"structure_id":14189,"section_number":"6.2-877","catch_line":"Overdrafts by bank officer or director","url":"\/6.2-877\/","token":"6.2\/II\/8\/9\/6.2-877","metadata":false},{"id":76996,"structure_id":14189,"section_number":"6.2-878","catch_line":"Loans secured by real estate generally","url":"\/6.2-878\/","token":"6.2\/II\/8\/9\/6.2-878","metadata":false},{"id":80117,"structure_id":14189,"section_number":"6.2-879","catch_line":"Certain loans not considered loans secured by real estate","url":"\/6.2-879\/","token":"6.2\/II\/8\/9\/6.2-879","metadata":false},{"id":59260,"structure_id":14189,"section_number":"6.2-880","catch_line":"Construction loans","url":"\/6.2-880\/","token":"6.2\/II\/8\/9\/6.2-880","metadata":false},{"id":78478,"structure_id":14189,"section_number":"6.2-881","catch_line":"Investment in reverse annuity mortgages","url":"\/6.2-881\/","token":"6.2\/II\/8\/9\/6.2-881","metadata":false},{"id":60973,"structure_id":14189,"section_number":"6.2-882","catch_line":"Bank borrowing money or rediscounting its notes","url":"\/6.2-882\/","token":"6.2\/II\/8\/9\/6.2-882","metadata":false},{"id":87132,"structure_id":14189,"section_number":"6.2-883","catch_line":"Acceptance of drafts or bills of exchange; issuance of letters of credit","url":"\/6.2-883\/","token":"6.2\/II\/8\/9\/6.2-883","metadata":false},{"id":76682,"structure_id":14189,"section_number":"6.2-884","catch_line":"Ownership and lease of personal property","url":"\/6.2-884\/","token":"6.2\/II\/8\/9\/6.2-884","metadata":false},{"id":64536,"structure_id":14189,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","url":"\/6.2-885\/","token":"6.2\/II\/8\/9\/6.2-885","metadata":false},{"id":74671,"structure_id":14189,"section_number":"6.2-886","catch_line":"Regulation of controlled subsidiary corporations by Commission","url":"\/6.2-886\/","token":"6.2\/II\/8\/9\/6.2-886","metadata":false},{"id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","metadata":false},{"id":69740,"structure_id":14189,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","url":"\/6.2-888\/","token":"6.2\/II\/8\/9\/6.2-888","metadata":false}],"previous_section":{"id":64536,"structure_id":14189,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","url":"\/6.2-885\/","token":"6.2\/II\/8\/9\/6.2-885","metadata":false},"next_section":{"id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-886\/","history_text":"

This law was first created in 1968. The record of its establishment is cataloged in chapter 270 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1968 \u201cActs\u201d aren\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 1978, chapter 797; in 1988, chapter 296; in 1993, chapter 64; in 1997, chapter 277<\/a>; in 1999, chapter 60<\/a>; in 2001, chapter 508<\/a>; in 2003, chapters 536<\/a> and 558<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":65808,"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","order_by":null,"url":"\/6.2-1146\/"},{"id":74353,"section_number":"6.2-873","catch_line":"Additional permissible investments in real estate","order_by":null,"url":"\/6.2-873\/"},{"id":64536,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","order_by":null,"url":"\/6.2-885\/"}],"refers_to":[{"id":81198,"section_number":"6.2-899","catch_line":"Examination of affiliates","order_by":null,"url":"\/6.2-899\/"},{"id":62085,"section_number":"6.2-908","catch_line":"Fees for supervision and regulation and for certain examinations and investigations","order_by":null,"url":"\/6.2-908\/"},{"id":56799,"section_number":"6.2-913","catch_line":"Closing bank; appointment of receiver","order_by":null,"url":"\/6.2-913\/"},{"id":80551,"section_number":"6.2-915","catch_line":"Protection of state deposits upon insolvency","order_by":null,"url":"\/6.2-915\/"},{"id":58223,"section_number":"6.2-917","catch_line":"Execution of powers of sale by receivers","order_by":null,"url":"\/6.2-917\/"},{"id":67404,"section_number":"6.2-918","catch_line":"Rights and powers of receivers generally","order_by":null,"url":"\/6.2-918\/"},{"id":78346,"section_number":"6.2-919","catch_line":"Interest on deposits; distribution of surplus remaining after payment of depositors","order_by":null,"url":"\/6.2-919\/"}],"permalink":{"id":265709,"object_type":"law","relational_id":74671,"identifier":"6.2-886","token":"6.2\/II\/8\/9\/6.2-886","url":"\/6.2-886\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-886\/","token":"6.2\/II\/8\/9\/6.2-886","dublin_core":{"Title":"Regulation of controlled subsidiary corporations by Commission","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-886","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A controlled subsidiary corporation shall be subject to audit and examination by the Commission<\/span> whether or not it is an affiliate as defined in § 6.2-899<\/a>. The controlled subsidiary corporation shall pay such examination fees as shall be imposed under § 6.2-908<\/a> for the examination of trust departments. If upon examination the Commission<\/span> shall ascertain that the corporation is created or operated in violation of this section or that the manner of operation is detrimental to the business of the parent bank<\/span> and its depositors, it may order<\/span> the bank<\/span> to dispose of all or part of its investment in such corporation upon such terms as the Commission<\/span> may deem proper. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A controlled subsidiary may not merge or consolidate unless the surviving corporation is itself a controlled subsidiary corporation, or unless as a result of such merger or consolidation<\/span> the bank<\/span> divests itself of all stock or other securities that are held pursuant to the authority granted by this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Commission<\/span> shall have the same powers over controlled subsidiary corporations as it has over banks under §§ 6.2-913<\/a>, 6.2-915<\/a>, 6.2-917<\/a>, 6.2-918<\/a>, and 6.2-919<\/a>, excepting those controlled subsidiary corporations that have no state banks<\/span> as stockholders. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREGULATION OF CONTROLLED SUBSIDIARY CORPORATIONS BY COMMISSION (\u00a7 6.2-886)\n\nA. A controlled subsidiary corporation shall be subject to audit and examination\nby the Commission whether or not it is an affiliate as defined in §\n6.2-899. The controlled subsidiary corporation shall pay such examination fees\nas shall be imposed under § 6.2-908 for the examination of trust\ndepartments. If upon examination the Commission shall ascertain that the\ncorporation is created or operated in violation of this section or that the\nmanner of operation is detrimental to the business of the parent bank and its\ndepositors, it may order the bank to dispose of all or part of its investment in\nsuch corporation upon such terms as the Commission may deem proper.\n\nB. A controlled subsidiary may not merge or consolidate unless the surviving\ncorporation is itself a controlled subsidiary corporation, or unless as a result\nof such merger or consolidation the bank divests itself of all stock or other\nsecurities that are held pursuant to the authority granted by this section.\n\nC. The Commission shall have the same powers over controlled subsidiary\ncorporations as it has over banks under §§ 6.2-913, 6.2-915, 6.2-917,\n6.2-918, and 6.2-919, excepting those controlled subsidiary corporations that\nhave no state banks as stockholders.\n\nHISTORY: 1968, c. 270, \u00a7 6.1-58.1; 1978, c. 797; 1988, c. 296; 1993, c. 64;\n1997, c. 277; 1999, c. 60; 2001, c. 508; 2003, cc. 536, 558; 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}}