                                 CODE OF VIRGINIA

EXAMINATION OF STATE SAVINGS INSTITUTIONS AND AFFILIATES BY COMMISSIONER; REPORT
OF EXAMINATION (§ 6.2-1195)

A. As used in this section, the term &#8220;affiliate of any state savings
institution&#8221; means any entity (i) of which the state savings institution,
directly or indirectly, owns or controls either a majority of the voting shares
or more than 50 percent of the number of shares voted for the election of its
directors, trustees, or other persons exercising similar functions at the
preceding election, or controls in any manner the election of a majority of its
directors, trustees, or other persons, exercising similar functions, (ii) of
which control is held, directly or indirectly, through stock ownership or in any
other manner, by the shareholders of such state savings institution who own or
control either a majority of the shares of the state savings institution or more
than 50 percent of the number of shares voted for the election of directors of
the state savings institution at the preceding election, or by trustees for the
benefit of the shareholders of the state savings institution, or (iii) of which
a majority of the directors, trustees, or other persons exercising similar
functions are directors of the state savings institution.

B. The Commissioner shall, not less than once during any period of three
consecutive calendar years, or at such additional times as he deems necessary,
with or without previous notice, examine each state savings institution. A copy
of the report of all examinations shall be furnished to the savings institution.
The report shall be presented by the president or other chief executive officer
to the directors at their next meeting.

C. No other copies of a report of examination shall be made except as necessary
for review by officers and directors of the state savings institution. Copies of
the report made for officers and directors of the savings institution shall not
be removed from the premises of such savings institution and shall be destroyed
after the review has been completed. The original examination report shall be
kept among the records of the Bureau. Upon resolution of the board of directors
of a savings institution, examination reports may be inspected in the savings
institution by such other persons as the board may specify.

D. In connection with the examination of any state savings institution, the
Commission may make or cause to be made an examination of the affiliates of the
state savings institution as shall be necessary to ascertain the financial
condition of the savings institution and disclose fully the relations between
the savings institution and its affiliates and the effect of such relations upon
the affairs of the savings institution.

E. Upon written application made to the Commission by the board of directors or
by the stockholders representing two-fifths of the total outstanding capital
stock of any savings institution incorporated under the laws of and doing
business in the Commonwealth, or when, in the judgment of the Commission, it may
be necessary for the protection of the public or of persons depositing or
dealing with such state savings institution, the Commission shall cause to be
made a special examination of such state savings institution. All expenses
incident to such special examination may be charged to the state savings
institution so examined and shall be paid by the savings institution so charged.

HISTORY: Code 1950, § 6-201.54; 1960, c. 402; 1966, c. 584, § 6.1-184; 1972,
c. 796, § 6.1-195.64; 1976, c. 82; 1985, c. 425, § 6.1-194.79; 1991, c. 230,
§ 6.1-194.145; 1992, c. 224; 1996, c. 80; 1997, c. 50; 2010, c. 794.