4000 - Advisory Opinions
Whether an Insurance Application is Required to Continue the Insured Status of a Virginia Savings Bank When It Converts to a Commercial Bank Charter.
June 7, 1991
Roger A. Hood, Assistant General Counsel
Your May 31 letter requests written confirmation that FDIC Insurance will remain in effect after conversion of *** [Savings Bank] ("[Savings Bank]"), to commercial bank status pursuant to section 6.1-194.38 of the Code of Virginia.
Section 6.1-194.38 provides for conversion from State savings bank to State commercial bank status by appropriate amendment of the savings bank's articles of incorporation. Since the resulting commercial bank will continue to be the same legal entity as [Savings Bank] under Virginia law (albeit with a modified charter), it will remain FDIC-insured without the need to make any application to FDIC to continue its insured status.