                                 CODE OF VIRGINIA

REGULATION OF CONTROLLED SUBSIDIARY CORPORATIONS BY COMMISSION (§ 6.2-886)

A. A controlled subsidiary corporation shall be subject to audit and examination
by the Commission whether or not it is an affiliate as defined in &#xA7;
6.2-899. The controlled subsidiary corporation shall pay such examination fees
as shall be imposed under &#xA7; 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. 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.

C. The Commission shall have the same powers over controlled subsidiary
corporations as it has over banks under &#xA7;&#xA7; 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.

HISTORY: 1968, c. 270, § 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.