Title 9, Banking
20 chapters · 557 sections in this title.
9 V.I.C. § 1 Definitions
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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 co…
9 V.I.C. § 2 Application of title
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This title is applicable to all banks organized before or after it takes effect, but does not apply to national banking associations.
9 V.I.C. § 3 Requirements for banking business
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For a bank to engage in the banking business in the United States Virgin Islands, compliance with the requirements of this title shall first be necessary, and the engaging in such business without having complied therewith shall be punished as provided in this title.
9 V.I.C. § 4 Use of term “bank”
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The term “bank” in the designation of a business shall be used only by corporations doing a banking business exclusively international financial services entities or by an international banking entity.
9 V.I.C. § 5 Restrictions on name of bank or foreign bank
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No bank or foreign bank shall be established under the same name as that already used by another institution, or so nearly similar thereto as to lead to confusion. When a bank ceases doing active business it may transfer or assign to another bank the right to use its name. No ban…
9 V.I.C. § 6 Disclosure of information
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Whoever, being an officer, director or employee of any bank authorized to do business in the United States Virgin Islands, discloses any information concerning a depositor or borrower or such person's account with such bank, or who discloses any confidential information concernin…
9 V.I.C. § 7 Application with other laws
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Domestic and foreign banks, as corporations or other legal entities, shall be subject to the applicable provisions of the law applicable to their legal structure only to the extent that such provisions of are compatible and do not conflict with the provisions of this title; and i…
9 V.I.C. § 30 Organization
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(1) Any legal form or structure including that of a corporation, partnership, limited liability company, or other entity, may be used to create an entity for licensure as a bank, in accordance with this title, provided that such entity meets all requirements for capitalization, a…
9 V.I.C. § 31 Incorporation
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(a) Any five or more persons of sufficient legal capacity may organize a bank; but for said purpose they shall first apply for a permit from the Banking Board, and such application shall be accompanied by a fee as promulgated by the Banking Board. Said application shall set forth…
9 V.I.C. § 32 Certificate of incorporation; beginning of corporate existence
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Upon subscribing and swearing to the articles of incorporation, as provided in section 31 of this title, and upon submitting the two copies of the same to the Lieutenant Governor, together with the permit granted by the Banking Board authorizing the organization of the bank, and …
9 V.I.C. § 33 General meeting of stockholders; bylaws
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Before a bank shall begin to do business, the stockholders thereof shall hold a general meeting and adopt bylaws governing the corporation. A number of stockholders representing more than two-thirds of the paid-in capital shall be present at such meeting, and in order that any ac…
9 V.I.C. § 34 Commencement of business
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Notice to Banking Board of certificate of incorporation Notice to Banking Board of certificate of incorporation (a) Upon the issuing by the Lieutenant Governor of his certificate of incorporation, as provided in section 32 of this title, he shall so notify the Banking Board and a…
9 V.I.C. § 35 Amount of capital stock
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Rights and liabilities of stockholders and creditors Rights and liabilities of stockholders and creditors (a) No bank shall be organized and established in the United States Virgin Islands with a subscribed capital less than $500,000. The capital stock of each bank shall be divid…
9 V.I.C. § 36 Liabilities of stockholders
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If any shareholder neglects or refuses, after three months' notice, to pay the assessment provided in subsection (d) or (e) of section 35 of this title, the Board of Directors shall cause a sufficient amount of the capital stock of such shareholder to be sold at public auction (u…
9 V.I.C. § 37 Register of shares; stock certificates
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All shares shall be recorded in a book which shall be kept for that purpose by each bank at its main office, in which book entry shall also be made of all subsequent transfers of said shares. Each certificate of stock shall contain a statement showing the par value of each share,…
9 V.I.C. § 38 Amendment of articles of incorporation
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(a) Every bank organized under this title may amend its articles of incorporation by—(1) changing its name, subject to the provisions of section 5 of this title;(2) increasing or decreasing its authorized capital stock, subject to the minimum limit allowed by law;(3) changing the…
9 V.I.C. § 39 Directors and officers; stockholders' meetings
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(a) The management of banks shall be under the control of a Board of Directors elected at a general meeting of the stockholders. The Board of Directors shall consist of at least five persons, one-third of the total number of whom shall be bona fide residents of the United States …
9 V.I.C. § 40 Banks established prior to June 16, 1949
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Banks established and doing business in the United States Virgin Islands prior to June 16, 1949, are not required to meet the provisions of incorporation in this title and the operating capital of the bank as of June 16, 1949, is deemed to have met the requirements of this title …
9 V.I.C. § 41 Changes in control of banks
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(a) No sale or exchange or acquisition of the voting capital stock issued by any bank or bank holding company organized under the provisions of this title that may result in the control or in a change in the control of a bank shall be made until the Banking Board has been notifie…
9 V.I.C. § 42 Filing fees for banks and foreign banks
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(a) Every bank or foreign bank in the United States Virgin Islands shall upon filing its articles of incorporation in the Office of the Lieutenant Governor pay a filing fee of $300. (b) Every bank or foreign bank desiring to file in the Office of the Lieutenant Governor articles …
9 V.I.C. § 43 Annual licenses for banks and foreign banks; grace period; penalties
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(a) The Lieutenant Governor, upon recommendation of the Banking Board, shall issue licenses to engage in the business of banking. No person or other entity may engage in the business of banking in the Territory without first obtaining a permit and otherwise complying with the pro…
9 V.I.C. § 44 Resident agent to accept service of process
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Every bank shall appoint a bona fide resident of the United States Virgin Islands as its resident agent on whom service of legal process against it can be made, and service upon such resident agent shall constitute service on the bank by whom such resident agent was appointed. Ea…
9 V.I.C. § 61 Regulation and supervision of banks and foreign banks; insurance; penalty for violation; review
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(a) All banks and, to the extent of and with respect to business done at any branches established in the United States Virgin Islands, all foreign banks doing business in the United States Virgin Islands shall be regulated and supervised by the Banking Board in such manner as to …
9 V.I.C. § 62 Examination of banks and foreign banks
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Right of inspection; examiners Right of inspection; examiners (a) Every bank and every branch thereof, and every branch established in the United States Virgin Islands by a foreign bank doing business in the United States Virgin Islands, and every other entity engaged in the busi…
9 V.I.C. § 63 Interest of government officials in banks; removal; exception
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(a) Neither the Lieutenant Governor nor any representative of the Lieutenant Governor, nor any member of the Banking Board or employee thereof, nor any bank examiner shall, during the discharge of his office—(1) be an officer, director or employee in any bank, foreign bank, bank …
9 V.I.C. § 64 Reports of banks and foreign banks; penalties
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(a) Every bank or foreign bank shall make at least one report each year to the Banking Board within ninety days after close of the bank's fiscal year, and according to forms to be prescribed by it, verified by the oath of the chief executive officer and attesting officer, certify…
9 V.I.C. § 66 Annual statements to mortgagor
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(a) Where, by the terms of a mortgage on real property or as otherwise required by a mortgagee, banking or lending institution, the mortgagor is required to make periodic payments which include sums to be allocated to an escrow account for the purpose of paying taxes, insurance o…
9 V.I.C. § 67 Interest on escrow accounts
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(a) Every mortgagee, banking or lending institution requiring a mortgagor to maintain an escrow account for the purpose of paying taxes, insurance or improvements or for insurance settlements or on behalf of the mortgage property, shall pay to or to the account of such mortgagor,…
9 V.I.C. § 68 Community reinvestment requirements
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(a) Every foreign bank shall annually prepare a Community Reinvestment Act (CRA) statement for each island of the territory and shall include the CRA statements in its annual report filed under section 64 of this title. Each CRA statement shall contain:(1) the name of the island;…
9 V.I.C. § 81 Applicability of section
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Any two or more financial institutions or other entities organized under the laws of any Territory, or state of the United States, may merge or consolidate into one sole entity which may be any of the merged or consolidated financial institutions. Such merger or consolidation sha…
9 V.I.C. § 82 Agreement between directors
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Financial institutions or other entities intending to merge or consolidate may enter into an agreement for merger or consolidation of said, financial institutions, in which agreement they shall establish the terms and conditions of such merger or consolidation; the manner of carr…
9 V.I.C. § 83 Action by stockholders on such agreement
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The aforesaid agreement shall be submitted separately for consideration to the stockholders of each of the merging or consolidating financial institutions, at a meeting called for the purpose. A written notice shall be sent to the post-office address of each stockholder, not less…
9 V.I.C. § 84 Action by Banking Board; filing of approved agreement
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In making its determination, the Banking Board shall consider, among other factors, the public interest. If the board does not approve the merger or consolidation it shall, within ten (10) days of making such decision not to approve, serve notice of its determination on the appli…
9 V.I.C. § 85 When agreement takes effect
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Once the aforesaid merger or consolidation agreement has been entered into, perfected and filed in the Office of the Lieutenant Governor, the banks or bank holding companies involved shall be considered as one sole entity under the name provided in the agreement (in case a new en…
9 V.I.C. § 86 Recourse of dissenting stockholders
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If any stockholder not voting in favor of said merger or consolidation agreement records his opposition to such merger or consolidation at the time of the meeting, or within twenty days thereafter, and demands payment of his shares, and if such merger or consolidation is carried …
9 V.I.C. § 87 Title to property and assets
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When a merger or consolidation is made under the provisions of this title, each and all the property, shares, rights, franchises, powers and privileges of the merged or consolidated financial institutions shall become the property of the consolidated or of the newly organized fin…
9 V.I.C. § 88 Obligations of merged or consolidated entities
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The obligations of the merged or consolidated financial institutions and the rights of the creditors of any of them shall in no case be prejudiced or impaired in any way by such merger or consolidation, and none of the rights, obligations and claims of any person, creditor, depos…
9 V.I.C. § 101 Establishment in the United States Virgin Islands
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Filing of charter or articles of incorporation and statement Filing of charter or articles of incorporation and statement (a) Upon compliance with the provisions of this chapter, any banking corporation organized under the laws of any other territory or state or of any foreign co…
9 V.I.C. § 102 Investigation by Banking Board; permit required
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(a) No foreign bank may open any branch, or change the location of any branch, in the United States Virgin Islands without a permit so to do from the Banking Board. An application to the Banking Board for such permit shall state the benefit to the public expected to result from t…
9 V.I.C. § 103 Assets to be retained in United States Virgin Islands
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Every foreign bank which is engaged in banking operations in the United States Virgin Islands shall be under obligation to retain therein either as loans, bonds of the Government of the United States or of the Government of the United States Virgin Islands or obligations of the p…
9 V.I.C. § 104 Commencement of business
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(a) When the permit of the Banking Board is received by the foreign bank, as provided in section 102 of this title, it shall proceed to comply with all applicable provisions of law so as to place it in readiness to commence business upon issuance to it of the license provided by …
9 V.I.C. § 105 Applicability of chapter to foreign banks; penalties
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No foreign bank shall transact business in the United States Virgin Islands except upon compliance with the applicable provisions of this chapter. Violations of this chapter shall be punished by a fine of not to exceed $1,000 for each day that the violation continues. Any person …
9 V.I.C. § 120 Business days and hours
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(1) (a) A financial institution may, at its discretion, establish days and hours for its offices, provided that it shall post the days and hours of operation at or near the public entrances to its offices.(b) A financial institution may temporarily close any of its offices for re…
9 V.I.C. § 121 General powers of banks and foreign banks
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(1) In addition to the general powers conferred upon domestic corporations or other organizational entities the structures of which are used by banks under the laws of the United States Virgin Islands, every bank, and, with respect to business done at any branches established in …
9 V.I.C. § 122 Legal reserve of banks and foreign banks
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(a) Subject to such additional requirements as the Banking Board may impose, every bank or foreign bank shall maintain a legal reserve which shall not be less than 20 percent of its demand liabilities, excepting deposits of the United States Virgin Islands or Federal Government, …
9 V.I.C. § 123 Transactions of banks and foreign banks restricted; penalties
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(a) No bank or foreign bank may make to any one person, firm, partnership or corporation, one or more loans or discounts totaling more than 15 percent of the paid-in capital, reserve, and undistributed profits of such bank or foreign bank, nor shall it accept the security of any …
9 V.I.C. § 124 Certified checks; penalty for false certification
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It shall be unlawful for any director, officer, agent or employee of any bank or foreign bank to certify any check drawn upon said bank unless the person or company drawing the check has on deposit with the bank, at the time such check is certified, an amount not less than the am…
9 V.I.C. § 125 Embezzlement, etc.; penalty
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(1) Whoever, being a president, director, or cashier, or an officer, employee, or agent of any bank or foreign bank—(1) embezzles, abstracts, or wilfully misapplies, any of the moneys, funds, or credits of the bank or securities therein; or(2) without being duly authorized, issue…
9 V.I.C. § 126 Penalty for receiving deposits when insolvent
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(a) Whoever, being an officer, agent, collector, teller, or clerk of any bank or foreign bank doing business in the United States Virgin Islands, receives any deposit knowing that such bank or foreign bank is insolvent—(1) if the amount or value of such deposit is less than $25, …
9 V.I.C. § 127 Fraudulent conveyances; attachment, etc.; penalties
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All transfers of notes, bonds, bills of exchange or credits of any bank or foreign bank or of deposits to the credit thereof, and all assignments of mortgages, security on real property, or of judgments or decrees in favor of such bank, and all deposits of money, gold and silver …