                                 CODE OF VIRGINIA

CAPITAL STOCK SUBSCRIPTIONS (§ 6.2-817)

A. Subscriptions to the capital stock of a bank shall be paid in money at not
less than par. No bank shall begin business until the amounts specified in its
certificate of authority to commence business have been received by the bank.

B. All money received for subscriptions to or for purchases of stock of a bank
before it opens for business shall be deposited in an escrow account in an
insured financial institution or invested in United States government
obligations, under the joint control of two organizing directors of the bank.
Such funds, together with any income thereon, shall be remitted to the bank on
the day it opens for business. If the bank is denied a certificate of authority
or is refused insurance of accounts, or it otherwise is determined that the bank
will not open for business, such funds, after payment of any amount owing for
expenses in connection with such attempted organization, including reasonable
consulting fees, attorney fees, salaries, filing fees, and other expenses, shall
be refunded to subscribers or shareholders.

C. The requirement that capital stock be paid in money shall not be construed to
prohibit the establishment, as otherwise authorized by law, of stock option
plans, stock purchase plans, and restricted stock award plans, and the issuance
of stock pursuant to such plans. Such plans shall be established only after the
bank has opened for business, and shall be approved by a majority vote of the
bank&#8217;s shareholders. In no event shall any stock option be granted at a
price which is less than 100 percent of the fair market value per share of the
stock.

HISTORY: Code 1950, § 6-34; 1964, c. 58; 1966, c. 584, § 6.1-14; 1980, c. 659;
2010, c. 794; 2011, c. 240; 2019, cc. 253, 254.