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Can you summarize 6.2 VACV Chapter 7?
Acquisitions of Interests in Financial Institutions
Short Summary
This legal document pertains to the Code of Virginia, specifically the section on Acquisitions of Interests in Financial Institutions. It establishes a regulatory framework for the acquisition of interests in financial institutions and financial institution holding companies in Virginia. The document outlines the requirements for submitting a complete application and the investigation period that follows. The Commission conducts an investigation to determine the impact of the proposed acquisition on the safety and soundness of the applicant and the financial institution involved. The investigation also assesses the qualifications of the applicant and any proposed directors and officers, the potential prejudice to depositors, creditors, beneficiaries, or shareholders, and whether the acquisition is in the public interest. The investigation period can be shortened, waived, or extended based on certain circumstances. The Commission may order a hearing upon request. Within the investigation period, the Commission can disapprove the application or impose conditions on the acquisition. If the Commission takes no action or issues notice of intent not to disapprove, the acquisition may proceed. Parties aggrieved by the Commission’s decision have the right to appeal to the Supreme Court of Virginia. The document also provides exemptions for certain types of mergers or acquisitions authorized by the Commission, acquisitions arranged by supervisory authorities to prevent insolvency, and the formation of a corporation by a financial institution to acquire and hold its own stock. The document specifies penalties for non-compliance or violation of the provisions, including civil penalties, injunctions, and the removal of directors or officers.
Whom does it apply to?
Virginia banks, bank holding companies, financial institution holding companies, out-of-state bank holding companies, and any person or financial institution intending to acquire or make a public offer to acquire control of a Virginia financial institution or a Virginia financial institution holding company
What does it govern?
Acquisitions of interests in financial institutions
What are exemptions?
Exemptions include certain types of mergers or acquisitions authorized by the Commission, acquisitions arranged by supervisory authorities to prevent insolvency, and the formation of a corporation by a financial institution to acquire and hold its own stock. Consumer finance companies and savings institutions are also exempt.
What are the Penalties?
The Commission has the authority to impose civil penalties on financial institution holding companies and their officers for noncompliance with the provisions of 6.2-707. The penalties range from $100 to $1,000 per day for financial institution holding companies and $25 to $100 per day for officers. The Commission can also impose a civil penalty of up to $10,000 for violating any lawful order and may remove a director or officer who repeatedly violates such orders. Additionally, any person violating the provisions of this chapter or its regulations may be subject to an injunction and a civil penalty of up to $1,000 per day for each day the violation continues. The defendant has the right to be heard, introduce evidence, and appeal as provided by law.
Jurisdiction
Virginia