Virginia General Assembly Confirms that National Banks Can Serve as Virginia Fiduciaries without an In-state Office

March 16, 2011

On March 14, 2011, Governor McDonnell signed into law House Bill 2366, which confirms that a national banking association supervised and regulated by the federal Comptroller of the Currency may serve in Virginia as a trustee, executor, administrator, or other fiduciary without a Virginia office. The bill makes changes to Virginia Code section 6.2-1001 to codify a 2003 Virginia Attorney General Opinion (No. 03-122).

Virginia Attorney General Opinion 03-122 provided that the National Banking Act preempts any Virginia law that prohibited a bank regulated by the federal Comptroller of the Currency from serving as a Virginia fiduciary. This measure also follows a recent change to Virginia Code section 6.2-1003 that confirms that out-of-state banks or trust companies will not be treated differently than in-state institutions with respect to a statutory exemption from providing security on their bond when serving as executor or trustee in Virginia.

House Bill 2366 has an effective date of July 1, 2011.

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