CODE OF VIRGINIA

OWNERSHIP AND LEASE OF PERSONAL PROPERTY (§ 6.2-884)

A. As used in this section, “personal property” includes fixtures.

B. A bank may become the owner and lessor of personal property, subject to the
following limitations:

   1.  Except in the case of short-term leases where a subsequent sale or
   reletting is anticipated, the rentals receivable by the bank under the initial
   lease of any item of personal property shall equal at least the cost to the
   bank of such item of personal property;

   2.  Any leasing or rental obligations to any bank of any person shall be
   treated as obligations subject to the limitations imposed by § 6.2-875; and

   3.  Upon the expiration of any lease whether by virtue of the lease agreement
   or by virtue of the retaking of possession by the bank, the personal property
   shall be sold or otherwise disposed of, or charged off within one year from
   the time of expiration of such lease unless it is held for the purpose of
   reletting.

C. No personal property acquired pursuant to this section shall be included in
computable investment in fixed assets under § 6.2-870.

HISTORY: 1968, c. 56, § 6.1-68.1; 1989, c. 482; 2010, c. 794.