CODE OF VIRGINIA

DEPOSITS HELD OR RECEIVED BY TRUST SUBSIDIARIES OR SUBSIDIARY BANK WITH
AFFILIATE BANKS (§ 6.2-1057)

A. Funds received or held by a trust subsidiary or subsidiary bank while
awaiting investment or distribution shall not be used by an affiliate bank or
owning bank in the conduct of its business or deposited in such bank, unless the
bank first delivers to its trust department or to the trust subsidiary or
subsidiary bank, as collateral security therefor, securities of any of the
classes described in subdivision B 1, B 2, or B 3 of § 6.2-1005, in an amount
described in subsection B.

B. The securities deposited as collateral as required by subsection A shall be
owned by the bank and shall at all times be at least equal in market value to
the amount of trust funds held on deposit by such trust subsidiary or subsidiary
bank, less such amount thereof as are insured by the Federal Deposit Insurance
Corporation.

C. In the event of the failure or liquidation of such bank, the trust subsidiary
or subsidiary bank and the owners of the beneficial interest in such trust funds
shall have a lien on the bonds or other securities so set apart, in addition to
their claims against the estate of the bank.

HISTORY: 1974, c. 286, § 6.1-32.8; 1991, c. 282; 2010, c. 794.