CHAPTER 222

AN ACT to amend and reenact §§ 6-195 and 6-196 as amended, of the Code
of Virginia, and to amend the Code of Virginia by adding new sec-
tions numbered 6-191.1, 6-198.1, 6-194.1 and 6-194.2, the amended and
new sections relating generally to the conduct and supervision of
building and loan associations under the Virginia Building and Loan
Act, and specifically to statements of financial conditions and requiring
publication thereof, to exemptions from certain provisions of law,
meetings of the board of directors and requiring same, requiring ez-
aminations, settlement of the accounts of the cashier, providing for
an audit of such association and requiring the Commissioner of Bank-
ing to furnish members of boards of directors with certain informa-

tion.
[S 105]
Approved March 7, 1958

Be it enacted by the General Assembly of Virginia:

1. That §§ 6-195 and 6-196 as amended of the Code of Virginia be
amended and reenacted, and the Code of Virginia be amended by adding
new sections numbered 6-191.1, 6-193.1, 6-194.1 and 6-194.2, the amended
and new sections being as follows:

§ 6-191.1. The board of directors of every such association shall meet
at least once in each month, at which meeting a majority of the whole board
shall be necessary for the lawful transaction of business, except that the
stockholders, by by-law may fix any number not less than five as a quorum;
provided, however, that associations with total assets of less than $500,-
000.00 shall meet at least once every three calendar months; provided
further that the Commission, after examination thereof, may require
monthly meetings of the board of directors.

§ 6-198.1. The directors of every such association shall, at least once
in each calendar year, cause an examination to be made of the association.
A statement of the results of such examination shall be recorded with the
proceedings of the board.

§ 6-194.1. The Commission, if directed so to do by the State Corpo-
ration Commission, may require any such association to have an audit
made of the association’s books, records, and method of operation, con-
ducted at any time when it appears to the Commission that the system
of internal controls is not adequate, or that the association is engaging in
unsafe and unsound practices, or that the condition of the association is
such as to warrant it.

§ 6-194.2. The Commission shall annually send to each member of
the board of directors of every such association a statement setting forth
generally their duties and responsibilities as such. The statement shall in-
clude a brief outline of the examining procedure employed by the Com-
mission, an explanation of the distinction between an examination and
an audit, and any other information which the Commission deems neces-
sary to apprise the directors of the necessity for an adequate system of
internal controls.

§ 6-195. Every such association shall furnish the Commission at such
times as it requires statements of its financial condition on forms sup-
plied by the Commission; and upon the close of its fiscal or calendar year
every such association shall publish statements of its financial condition tn
condensed form in the English language in some newspaper printed or
having general circulation in the county, city or town where the business
of such association is carried on, or where the principal office of such
association is located. Such statements shall be made and published itn
accordance with forms prescribed by the Commission certified under oath
by the president or treasurer of the association, and attested by at least
three of its directors. Insofar as practicable, the reports which may be
required by this section of any such association shall conform to those
requtred of associations insured by any instrumentality of the Federal
government.

§ 6-196. The provisions of §§ 6-193 through * 6-200 except this §
6-196 shall not apply to any association which (1) during the preceding
calendar year did not accept from persons, other than its own officers and
directors, any money in payment for stock, except payments made on stock
subscribed for at the time of making a loan, by the borrower, for the pur-
pose of maturing such stock for the repayment of such loan, and which
(2) on or before March one of the current year files with the Commission
a statement, sworn to by its secretary, showing the total amount received
by it during the preceding calendar year in payment for shares of stock
(other than for the retirement of loans as set forth above), and which (3)
requests the Commission not to examine it.