                                 CODE OF VIRGINIA

COMPUTATION OF NET CAPITAL (§ 58.1-1205)

The net capital of any bank shall be ascertained by adding together its capital,
surplus, undivided profits, and one half of any reserve for loan losses net of
applicable deferred tax to obtain gross capital and deducting therefrom (i) the
assessed value of real estate as provided in § 58.1-1206, (ii) the book value
of tangible personal property under § 58.1-1206, (iii) the pro rata share of
government obligations as set forth in § 58.1-1206, (iv) the capital accounts
of any bank subsidiaries under § 58.1-1206, (v) the amount of any reserve for
marketable securities valuation which is included in capital, surplus and
undivided profits as defined hereinabove to the extent that such reserve
reflects the difference between the book value and the market value of such
marketable securities on December 31 next preceding the date for filing the
bank&#8217;s return under § 58.1-1207, and (vi) the value of goodwill described
under subdivision A 5 of § 58.1-1206.

HISTORY: Code 1950, § 58-485.07; 1980, c. 578; 1984, c. 675; 1999, c. 84; 2002,
c. 667.