                                 CODE OF VIRGINIA

SUBSTITUTION OF SUBSIDIARY BANK AS FIDUCIARY (§ 6.2-1059)

A. Upon obtaining permission to engage in the trust business, a subsidiary bank
may file an application in the circuit court of the jurisdiction in which its
main office is located requesting that it be substituted, except as may be
specified in such application, in every fiduciary capacity for a bank under
common ownership or a trust subsidiary under common ownership.

B. Upon a finding that (i) the subsidiary bank has been granted such permission
to engage in the trust business by the Commission or the Comptroller of the
Currency and (ii) the unimpaired capital and surplus of such subsidiary bank is
sufficient as prescribed in &#xA7; 6.2-1003, or bond with corporate surety has
been posted for any excess, or has been validly waived, the court shall enter an
order substituting the subsidiary bank in every fiduciary capacity for each of
the specified banks or trust subsidiaries under common ownership, except as may
be otherwise specified in the application.

C. Upon entry of such order, such subsidiary bank shall, without further act, be
substituted in every such fiduciary capacity. The substitution shall be
evidenced by filing a copy of the order with the clerk of any circuit court in
the Commonwealth. The order shall be indexed in each index in the records of
such court in which substitutions of fiduciaries are otherwise indexed. The
application may be made ex parte and need not list the fiduciary capacities in
which substitution is made. If a bank or trust subsidiary under common ownership
with the subsidiary bank shall already have qualified in any fiduciary capacity
and given bond, without surety, then if the order of substitution shall so
provide, which it may provide only if the fiduciary for which there is to be
substitution consents, the predecessor fiduciary shall remain liable on its bond
for the acts of its named successor, and no security or corporate surety shall
be required of the successor fiduciary on its bond.

D. Any bond, with corporate surety, posted under this section or under &#xA7;
6.2-1056 may be a blanket bond conditioned as otherwise contemplated by law.

E. Each designation in a will or other instrument heretofore or hereafter
executed of a bank or trust subsidiary as fiduciary shall be deemed a
designation of the subsidiary bank substituted for such bank or trust subsidiary
pursuant to this section except when the instrument is executed after such
substitution and expressly negates the application of this section. No waiver of
surety with respect to any fiduciary bond shall be effective except in such case
when the bond would be otherwise sufficient as contemplated by &#xA7; 6.2-1056
or this section. Any grant in such an instrument of any discretionary power
shall be deemed conferred upon the fiduciary deemed to have been nominated
hereunder.

F. A bank or trust subsidiary shall account jointly with the subsidiary bank
that has been substituted as fiduciary for such bank or trust subsidiary
pursuant to this section for the accounting period during which the subsidiary
bank is initially so substituted. Upon substitution pursuant to this section,
the bank or trust subsidiary shall deliver to the substituted subsidiary bank
all assets held by the bank or trust subsidiary as fiduciary, except assets held
for accounts to which there has been no substitution. Upon such substitution,
all such assets shall become the property of the subsidiary bank as fiduciary
without the necessity of any instrument of transfer or conveyance.

HISTORY: 1974, c. 286, § 6.1-32.9; 1987, c. 352; 1991, c. 282; 2010, c. 794;
2020, c. 239.