MONTROSE HOLDING TO ACQUIRE VIRGINIA FEDERAL <Virginia Federal Savings and Loan Association> said it has signed a definitive agreement to be acquired by <Montrose Holding Co>, an affiliate of <Montrose Capital Corp> for 20 mln dlrs. Virginia Federal and Montrose Capital said the agreement provides for the conversion of Virginia Federal from a mutual to a stock association and the purchase of 100 pct of its stock for 20 mln dlrs by Montrose. According to the companies, Virginia Federal has over 700 mln dlrs in assets and operates 16 branches in Virginia. Virginia Federal said the proceeds would enable it to provide increased mortgage and lending services and enable the company to compete more effectively in the Virginia market. The companies said the agreement is subject to Federal Home Loan Bank Board approval, expected later this year. Additionally, the companies said the converted association would be managed by a board of directors consisting of the six current Virginia Federal directors and two representatives of Montrose Holding. The senior management of Virginia Federal was expected to continue in office after the conversion, the companies said.