CODE OF VIRGINIA

SUBSTITUTION OF SUBSIDIARY BANK UNDER COMMON OWNERSHIP 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.

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 § 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 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 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 §
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 as fiduciary shall be deemed a designation of the subsidiary
bank under common ownership substituted for such bank 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 § 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 shall account jointly with the subsidiary bank that has been
substituted as fiduciary for such bank 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 shall deliver to the
substituted subsidiary bank under common ownership all assets held by the bank
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.