Virginia Code 6.2-1097: Effect on trust accounts of appointment of receiver for association or of voluntary dissolution of association
A. If a receiver is appointed for an association, the receiver shall, pursuant to the orders of the Commission and of any court having jurisdiction, proceed to close such of the association’s trust accounts as can be closed promptly and shall promptly transfer all other such accounts to substitute fiduciaries.
Terms Used In Virginia Code 6.2-1097
- Association: has the meaning assigned to it in § 6. See Virginia Code 6.2-1081
- Commission: means the State Corporation Commission. See Virginia Code 6.2-100
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Trust department: means that group or groups of officers and employees of an association, or of an affiliate of an association, to whom are assigned the performance of fiduciary services by the association. See Virginia Code 6.2-1081
B. If an association exercising trust powers commences a voluntary dissolution, the liquidating agent shall proceed at once to liquidate the affairs of the trust department as follows:
1. All trusts and estates over which a court is exercising jurisdiction shall be closed or disposed of as soon as practicable in accordance with the orders or instructions of such court;
2. All other trust accounts which can be closed promptly shall be closed as soon as practicable and final accountings made therefor; and
3. All remaining trust accounts shall be transferred by appropriate legal proceedings to substitute fiduciaries.
1984, c. 303, § 6.1-195.94; 2010, c. 794.