A subsidiary of a bank authorized under another state law makes mortgage loans in Virginia. The subsidiary itself is subject to federal regulatory supervision and examination. Does it qualify for the entity licensing exemption in Virginia Code section 6.2-1602(3)?
Correct Answer
B) Exempt: subsidiaries and affiliates under supervision are covered
Any lender authorized to do business as a bank, savings institution or credit union under the laws of the United States or any state, and subsidiaries and affiliates of such entities that are subject to general supervision or regulation or to audit or examination by a regulatory body or agency of the United States or any state, are exempt. Other choices: subsidiaries and affiliates are named; the charter state is not the test; and no exemption notice is required. Source: Va. Code § 6.2-1602(3)
Why This Is the Correct Answer
Any lender authorized to do business as a bank, savings institution or credit union under the laws of the United States or any state, and subsidiaries and affiliates of such entities that are subject to general supervision or regulation or to audit or examination by a regulatory body or agency of the United States or any state, are exempt. Other choices: subsidiaries and affiliates are named; the charter state is not the test; and no exemption notice is required. Source: Va. Code § 6.2-1602(3)
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