Chap. 434.—An ACT to amend and re-enact Section 6 of an act entitled “An
act to provide for the incorporation, establishment and operation of loan
and savings institutions known as ‘credit unions’”, approved March 27, 1922.

! : [H B 505]

Approved April 1, 1938

1. Be it enacted by the General Assembly of Virginia, That sec-
tion six of an act entitled an act to provide for the incorporation, es-
tablishment and operation of loan and savings institutions known as
‘credit unions,” approved March twenty-seventh, nineteen hundred and
twenty-two, be amended and re-enacted so as to read as follows:

Section 6. Reports; examinations; supervision.—Corporations or-
ganized under the provisions of this act shall be subject to such super-
vision and examination as the State Corporation Commission may, with-
in its discretion, deem necessary. Every such corporation shall make a
report of condition to the department of banking of the State Cor-
poration Commission on the dates of the second and last calls made
on State banks. These reports shall be verified by the oath of the
president and the treasurer or secretary, or by the oath of a majority
of the members of the supervisory committee, and they shall make such
further reports under oath as the State Corporation Commission or the
Commissioner of Banking shall at any time demand. Any such cor-
poration which neglects or refuses to make any report called for shall
be subject to fine, to be imposed by the State Corporation Commission,
of not more than ten dollars for each day of said neglect, unless ex-
cused by the commission for good cause shown.

Each credit union shall be examined at least once a year, but the
Commissioner of Banking may, in his discretion, order other examina-
tions; and the examiners shall be given free access to all books, papers,
securities and other sources of information in respect to said corpora-
tion. At the time of examination the Commissioner of Banking shall
charge an examination fee of seven dollars and fifty cents, but if the
assets of such credit union exceed twenty-five hundred dollars, the
examination fee shall be seven dollars and fifty cents for the first
twenty-five hundred dollars of assets and sixty cents per one thousand
dollars, or fraction thereof, for assets in excess of twenty-five hundred
dollars. For the purpose of making such examination the Commissioner
of Banking or one of his assistants, shall have the power and authority
to subpoena and to examine personally, or by one of his assistants, wit-
nesses on oath, whether such witnesses are members of the corporation
or not, and to require the production of all documents, whether said
documents are documents of the corporation or not. In the event that
any such corporation shall continue to neglect or refuse to make its
reports as hereinbefore provided for more than fifteen days, or in the
event that any such corporation shall fail to pay such charges as are
herein required, including the charges for delay in filing reports, the
Commissioner of Banking shall give notice to such corporation of his
intention to revoke the certificate of approval of said corporation for
said neglect or failure, and if such neglect or failure continues for fif-
teen days after such notice, then the State Corporation Commission may,
upon motion of the Commissioner of Banking, revoke or suspend the
license of the corporation; and may, in its discretion, close said cor-
poration and take possession of its property and business until such
time as it may see fit to allow the corporation to resume business, or
may proceed to finally liquidate said business, as may seem proper.

In the event that it appear to the Commissioner of Banking that
any such corporation is violating any provisions of this act, he may, after
a hearing or an opportunity for a hearing has been given to said ac.
cused corporation, direct that said corporation discontinue the illega
methods or practices mentioned in his order; subject to appeal by the
accused corporation to the State Corporation Commission. If any credit
union is insolvent, or has failed or refused to comply with the pro.
visions of this act, the Commissioner of Banking, upon order of the
State Corporation Commission, shall take possession of the business
and property of such corporation and retain such possession until such
time as he may permit it to resume business, or until its affairs are
finally liquidated under order of the State Corporation Commission.
All expenses incident to any special examination which may be nec-
essary may be ordered to be paid by the credit union so examined.