Chap. 142.-An ACT to amend and re-enact section 17 of an act entitled an act
to revise, collate and codify into one act the general statutes of the Common-
wealth relating to building and loan associations, which act shall constitute
and be designated and cited as the Virginia building and loan association
act, and to repeal all code sections and all acts and parts of acts inconsistent
therewith, and to provide penalties for violations thereof, approved March
5, 1932. [S B 290]

Approved March 16, 1934

1. Be it enacted by the General Assembly of Virginia, That section
seventeen of an ‘act entitled an act to revise, collate and codify into
one act the general statutes of the Commonwealth relating to building
and loan associations, which act shall constitute and be designated and
cited as the Virginia building and loan association act, and to repeal’
all Code sections and all acts and parts of acts inconsistent therewith,
and to provide penalties for violations thereof, approved March fifth,
nineteen hundred and thirty-two be amended and re-enacted so as to
read as follows:

Section 17. Supervision by State Corporation Commission; ex-
amination by Commissioner of Insurance and Banking; assessment
of fees to cover cost; financial statements to be furnished the State
Corporation Commission—The State Corporation Commission shall
have supervision over all building and loan associations doing any
business in this State, whether incorporated under the laws of this
State or not. The Commissioner of Insurance and Banking shall, not
less than twice in each and every year, and at such other times as in
his discretion he may deem necessary, examine or cause to be examined
each and every building and loan association doing business in this
State, whether incorporated under the laws of this State or not. For
the purpose of defraying expenses of such supervision and examination
the State Corporation Commission shall, on the first day of July of each
and every year assess against every building and loan association doing
business in this State, fees not in excess of the fees assessed against
incorporated State banks under the provisions of section forty-one
hundred and twenty-two of the Code of Virginia, as amended by an
act, approved March twenty-fifth, nineteen hundred and twenty. All
building and loan associations doing business in this State shall furnish
the State Corporation Commission at such times as it shall require,
statements of their financial condition on forms supplied by the Com-
missioner of Insurance and Banking.

In making such examinations as are required under the provisions of
this section, the officers, directors and employees of such building and
loan associations shall, upon the demand of the person or officers desig-

nated to make such examination, give to the examiner full access to
all money, books, papers, notes, bills and other evidences of debt of
said association and shall also disclose fully and truly all indebtedness
and liability thereof, and shall furnish said commissioner with all in-
formation which he may deem necessary to a full investigation into
the affairs of such association; and the said commissioner shall have
the right to examine under oath any and all of the directors, officers,
clerks, and employees of such association touching any matter or thing
connected with the operation of such association and for that purpose
shall have authority to administer oaths to the persons examined, and
shall, in addition, have the right to require the building and loan associa-
tion to furnish to him a mathematical calculation or chart showing in de-
tail the plan of the operation or investment carried on, for the purpose of
determining whether the same is financially and mathematically sound,
and the contracts or obligations issued or assumed are possible of
fulfillment.

If, upon the examination of any such building and loan association,
the State Corporation Commission shall ascertain that the laws of this
State are not being fully observed or that any irregularities are being
practiced, or that the capital stock of such association has been im-
paired or is in danger of being impaired, or that the interests of the
public are not being properly protected, the said commission shall give
immediate notice thereof to the officers and directors of such associa-
tion and if deemed necessary in order to conserve the assets of such
association or to protect the interest of members and creditors, or
either, thereof, the commission may exercise any or all of the following
powers: (first) temporarily close such association, for a period not
exceeding sixty days, which period may be further extended for a like
period or periods as the commission may deem necessary; (second) to
require the officers and directors of such association to liquidate in so
far as shall be required its outstanding loans; (third) require that the
impairment of the capital stock shall be made good; (fourth) require
that the said irregularities shall be promptly corrected; (fifth) require
such association to make reports daily or at such other times as may
be required to the commission as to the results achieved in carrying
out the orders of the commission; and (sixth) without examina-
tion, close, for such period or periods as the commission may deem
necessary, any association facing an emergency due to withdrawal of
funds or otherwise, or without closing such association grant to it
the right to suspend or limit the payment of indebtedness by the as-
sociation, however evidenced, for such period as the commission may
determine; and during such period no court shall entertain a suit or
action therefor against such association. The powers enumerated in
(one), (two) and (six) shall be exercised by the commission only
upon request of the directors of such association. If any such associ-
ation shall fail or refuse to comply with any such order or orders of
the commission, or if the commission shall determine that a receiver
should be appointed, it may close the doors of such association and
apply to the proper court for the appointment of a receiver to take

charge of the business affairs and assets of the said association and to
wind up its affairs, provided that the capital stock shall not be deemed
impaired, or in danger of being impaired within the terms of this act
unless the same has been reduced by an amount equal to at least fif-
teen per centum of the credits to its members or shareholders.

2. If any section, paragraph, sentence, clause or phrase of this act
is for any reason held to be unconstitutional, such decision shall not
affect the validity of the remaining portions of this act.

3. An emergency existing, this act shall be in force from its passage.