Chap. 287.—An ACT to amend and reenact Section 19, as amended, of Chapter
449 of the Acts of Assembly of 1922, approved March 27, 1922, relating. to
loans by credit unions. [H 396]

Approved March 16, 1948

Be it enacted by the General Assembly of Virginia:

1. That section nineteen, as amended, of chapter four hundred
forty-nine of the Acts of Assembly of nineteen hundred twenty-two,
approved March twenty-seven, nineteen hundred twenty-two, be
amended and reenacted as follows:
Section 19. Loans.—As provided in section eighteen, a credit
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 three hundred dollars. Endorsement of a note or assign-
ment 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
supplies 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 know-
ingly permitting or participating in making a loan of funds of a
credit union to a non-member thereof shall be guilty of a misde-
meanor. 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 knowingly 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 trans-
action of business.