                                 CODE OF VIRGINIA

COMMISSION&#8217;S REMEDIAL POWERS (§ 6.2-1036)

A. If the Commission finds that a trust company (i) has failed to fully observe
the laws of the Commonwealth, (ii) is being operated in an unsafe or unsound
manner, (iii) has failed to comply with any Commission order or regulation, (iv)
is engaging in any irregular practices, or (v) is, or is about to become,
insolvent or its capital has been, or is in danger of being, impaired, the
Commission shall give notice thereof to the officers and directors of the
company. If necessary to conserve the assets of the company or protect the
public interest, the Commission may:

   1. Close the company for a period not exceeding 60 days, which period may be
   further extended for a like period or periods as the Commission deems
   necessary;

   2. Require that all orders and regulations of the Commission be complied with;

   3. Require that the company make reports daily or at such other times as may
   be required as to the results achieved in carrying out the Commission&#8217;s
   orders;

   4. Require that any irregularities be promptly corrected;

   5. Require that any impairment of capital be made good; or

   6. Temporarily suspend the right of the company to receive any further
   property in a fiduciary capacity.

B. If the Commission determines that a receiver should be appointed for a trust
company, the Commission may close the company; take charge of the books, assets
and affairs of the company; and apply to any circuit court in the Commonwealth
for the appointment of a receiver to take charge of the company&#8217;s
business, assets and affairs. Proceedings for appointment of a receiver for a
trust company shall not be entertained by any court except on application of the
Commission.

C. The Commissioner may issue and serve upon a trust company a cease and desist
order if, in the opinion of the Commissioner, the company is engaging, has
engaged, or, there is reasonable cause to believe, is about to engage in an
unsafe or unsound practice, irregularity, or any violation of law, rule, or
regulation applicable to the conduct of its business, or any Commission order.
The cease and desist order shall contain a statement of the facts upon which it
is based and may require, in terms that may be mandatory or otherwise, the
company and its directors, officers, employees, and agents to cease and desist
from the practice or violation. The order shall specify its effective date and
shall notify the company of its right to request a hearing in accordance with
the Commission&#8217;s Rules.

D. When the practice or violation specified in an order issued pursuant to
subsection C, or any continuation thereof, is likely to prejudice the
company&#8217;s stockholders, or persons having an interest in property held by
the company in a fiduciary capacity, the Commissioner may make the order
effective immediately. An order shall remain in effect until withdrawn by the
Commissioner or terminated by the Commission after a hearing. A request for a
hearing shall be given expeditious treatment on the Commission&#8217;s docket,
and the Commission need not allow 10 days&#8217; notice to the company.

HISTORY: 1993, c. 432, § 6.1-32.28; 1994, c. 524; 1995, c. 140; 2010, c. 794.