Chap. 143.——An ACT to amend and re-enact Section 19 of Chapter 449 of the Acts
of the General Assembly of 1922, approved March 27, 1922, relating to loans by
credit unions. [fH B 264]

Approved March 9, 1942

1. Be it enacted by the General Assembly of Virginia, That section
nineteen of chapter four hundred and forty-nine of the Acts of the Gen-
eral Assembly of nineteen hundred and twenty-two, approved March
twenty-seventh, nineteen hundred and twenty-two, be amended and re-
enacted, as follows :

Section 19. Loans.—As provided in section eighteen, a ered union
may loan to its members for such purposes and upon such security and
terms as the by-laws shall provide and the credit committee shall approve ;
but security must be taken for any loan in excess of one hundred dollars.
Endorsement of a note or assignment of shares in any credit union shall
be deemed security in the meaning of this section.

A member who needs funds with which to purchase necessary sup-
plies for growing crops may receive a loan in fixed monthly installments
instead of in one sum.

The supervisory committee shall appoint a substitute to act on the
credit committee in the place of any member in case such member makes
application to borrow money from a credit union or become surety for
any other member whose application for a loan is under consideration.

All officers and members of any committee in any way knowingly
permitting or participating in making a loan of funds of a credit union
to a non-member thereof shall be guilty of a misdemeanor. The credit
union shall have the right to recover the amount of such illegal loans from
the borrower or from any officer or member of committees who know-
ingly committed or participated in the making thereof, or from all of them
jointly.
A borrower may repay the whole or any part of his loan on any day
on which the office of the corporation is open for the transaction of busi-
ness.