2019 US Virgin Islands Code
Title 9 - Banking
Chapter 1 - General Provisions
§ 1. Definitions

Universal Citation: V.I. Code tit. 9, § 1 (2019)
Next
  • As used in this title, unless it is otherwise provided or the context requires a different construction, application, or meaning—
  • “Affiliate” means an corporation partnership, limited liability company business trust, or any other legal organization or entity that controls, is controlled by, or is under common control with another such entity.
  • “Articles of incorporation” means the articles of incorporation of a corporation or other organizational documents necessary and appropriate in accordance with the structural laws under which an entity is organized.
  • “Authorized to do business in the Territory” means that a financial institution is authorized to do the business of banking in the Virgin Islands, if it is:

    • A. Organized under provisions of this title;

    • B. Organized under provisions of prior laws of this Territory and subject to the provisions of this title;

    • C. Organized under provisions of federal law and maintains this Territory as its home jurisdiction;

    • D. Organized under provisions of federal law or laws of a State or any other possession of the United States, including the Commonwealth of Puerto Rico, and maintains a branch in this Territory;

    • E. Organized under provisions of law of a foreign country and maintains a branch in this Territory in accordance with this title and applicable federal law.

      “Bank” means a domestic stock or mutual corporation or other legal entity with sufficient capital, authorized by law to receive deposits of money or securities, to open credits and accounts current and savings accounts, to make loans, to discount drafts, notes or other negotiable paper, to purchase and sell drafts, to trade in gold and silver, and in general to engage in the business of banking, closely related activities, and other services and activities as provided in this Title; but does not mean a national bank. “Banking Board” means the Banking Board of the United States Virgin Islands as established in the Office of the Lieutenant Governor. “Bank holding company” means a bank holding company as defined under the federal “Bank Holding Company Act of 1956”, as amended. “Branch” means any office of a financial institution where the business of banking is conducted, other than the institution's main office. “Business of banking” means being in the business of taking deposits or making loans and of conducting, offering, or engaging in any activities, products or services as provided by title 9 Virgin Islands Code, chapter 7, section 121. “Capital” for a financial institution means the following:

      • A. For financial institutions organized as corporations, “capital” means the sum of common stock paid-in common stock surplus, a perpetual preferred stock, undivided profits and other capital reserves

      • B. For financial institutions organized as limited liability companies, limited partnerships or limited liability partnerships, or other entities, “capital” means the sum of members' or partners' contributions and undistributed earnings of the company, partnership or other entity; and

      • C. For all financial institutions, “capital” means and includes all features as permitted by applicable federal law or, where such financial institution is not subject to federal law, as required by the FDIC whether or not such financial institution is subject to regulation by the FDIC.

      “Change in control” means any transaction by a bank or its holding company for which a notice is required to be filed with the FDIC or the Board of Governors of the Federal Reserve System pursuant to the federal Bank Holding Company Act or the Federal Deposit Insurance Act as a transaction for acquisition of control or other change in control as provided in such federal law, rule or regulation. “Control” means the power to vote directly or indirectly 25 percent or more of any class of the voting securities of a financial institution, the ability to control in any manner the election of a majority of a financial institution's directors or trustees, or the ability to exercise a controlling influence over the management and policies of a financial institution. “Corporation” means a corporation, limited liability company, limited partnership, business trust, or any other legal organization or entity. “Demand liabilities” means all such obligations as a bank or foreign bank is obliged to pay within a term not longer than three days. “Director” means the Director of the Division of Banking, Insurance and Financial Regulation, Office of the Lieutenant Governor. “Exempt international banking facility” means an exempt company, as defined in title 13, chapter 14, Virgin Islands Code, which is not a bank, but which is authorized to undertake certain limited banking activities pursuant to chapter 21 of this title. “FDIC” means the Federal Deposit Insurance Corporation or its successors. “Financial entity” means any bank, bank holding company, financial holding company, financial institution, financial institution holding company, foreign bank, foreign bank holding company, or affiliate or subsidiary of any and them, as defined in this chapter. “Financial holding company” means a financial holding company as provided by 12 U.S.C. 1841(p) et seq., as amended [Gramm-Leach-Bliley Financial Services Modernization Act of 1999]. “Financial institution” means a bank, foreign bank, trust company, nondepository trust company, savings bank, industrial bank or savings and loan association organized under the laws of this Territory, any State, or the United States. “Financial institution holding company” means an company that has control over any financial institution or has control over any company that controls any financial institution. A financial institution holding company shall be deemed to own shares owned by a subsidiary, and to engage in activities engaged in by a subsidiary or any other company of which it owns 5% or more of the voting interests. “Foreign bank” means a corporation organized for the purpose of engaging in banking business under the laws of another territory or state, or of a foreign country, operating a bank at the place of its incorporation. “Foreign bank holding company” means any company that controls, directly or indirectly, a foreign bank. “Governing body,” means the body that oversees the affairs of a financial institution. The governing body may also be referred to as the “board of directors,” “board of trustees,” “board of managers,” “partners' committee” or “managing partners' committee,” or other similar term, depending on the ownership structure. “Insurance producer” means any insurance agent or broker, surplus lines broker, insurance consultant, limited insurance representative, and any other person that solicits, negotiates, effects, procures, delivers, renews, continues or binds policies of insurance or offers advice, counsel, opinions or services related to insurance and is licensed to provide such services pursuant to title 22, Virgin Islands Code. “Interested party” means a person having a substantial interest in, or who is or may be aggrieved by, any act or impending act, or any report, rule, regulation, amendment, decision or order of the Director or Board. “Investor” means any person who has an ownership interest in a financial institution and is entitled to vote under the institution's organizational documents. “Legal reserve” means the sum which every bank and foreign bank shall at all times have available for the payment of their deposit liabilities pursuant to the provisions of this title. “National banking association” means a bank incorporated and organized under the National Bank Act (12 U.S.C. § 21 et seq.), and laws amendatory thereof or supplementary thereto. “Not authorized to do business in this Territory” means any person engaged in the business of banking that does not satisfy the definition of “authorized to do business in this Territory”. “Officer” means an employee of a financial institution who has been given managerial or other high-level duties by the governing body of the financial institution. Depending on the ownership structure of the institution, an officer may include a person with the title of chair, president, vice-president, manager, managing partner or partner. “Organizational document” means the charter, certificate of organization, articles of incorporation articles of association, articles of organization, certificate of limited liability partnership, bylaws, operating agreement, partnership agreement or any other similar document required to be filed with and approved by the Director or Banking Board or otherwise essential for the operation of the corporation. “Paid in capital, reserve and undistributed profits” means, in the case of a foreign bank, the aggregate paid in capital, reserve and undistributed profits of such bank and not merely that allocated to, located in or arising out of its operations in the United States Virgin Islands. “Real estate activities” means any real estate-related service to the extent and as authorized for any financial institution charted by or otherwise subject to the jurisdiction of the Government of the United States pursuant to federal law. “Reserve fund” means a fund formed or increased either by assessment on the stock holders or by transfer of net profits or of the undivided profits of the bank, and such fund shall not be used for payment of dividends or for the purpose of paying the expenses of the bank while there is any available balance in the undivided profits account. “Savings account” means a deposit account other than one from which funds may be withdrawn by use of checks or drafts. “Service corporation” means a corporation substantially all the activities of which consist of originating, purchasing, selling and servicing loans and participation interests therein; or clerical, bookkeeping, accounting and statistical or similar functions related to a financial institution or real estate activities; or management, personnel, marketing or investment counseling related to a financial institution or real estate activities; or establishing or operating one or more satellite facilities; or any activity authorized by the Director or Banking Board by rule or order that has been authorized under federal law for service corporations owned or controlled by national banks, federally chartered savings and loan associations, federally chartered savings banks or federally chartered credit unions. “Shareholder” means any person who has an ownership interest in a financial institution and is entitled to vote under the institution's organizational documents. “Share” and “stock” means shares of stock or other interests as may be appropriate for the structure of the particular entity involved, including but not limited to membership units or other units of measure that indicate a right to participate in profits and losses of the organizational entity of which they are part, including but not limited to corporations and limited liability companies. “Subsidiary” means a corporation, partnership, business trust association or similar organization, all of which are referred to in this subsection as “another company,” owned or controlled by a financial institution or financial institution holding company. “Total capital” means the sum of capital, as defined in this Section, plus capital notes and debentures, other instruments approved by the Director or Banking Board, and the allowance for loan losses or other similar reserves.
Next
Disclaimer: These codes may not be the most recent version. US Virgin Islands may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.