Chap. 290.—An ACT to amend and reenact Section 20 of Chapter 449 of the
Acts of Assembly of 1922, approved March 27, 1922, relating to reserve funds
of credit unions. {H 420]

Approved March 16, 1948

Be it enacted by the General Assembly of Virginia:

1. That section twenty 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 20. Reserve fund.—All entrance fees, transfer fees
and fines shall, after payment of the organization expenses, be
added to the reserve fund of the corporation. At the close of each
fiscal year there shall be set apart to the reserve fund ten per
centum of the gross income of the corporation which has accumu-
lated during the year, until the reserve fund is equal to twenty
per centum of the total assets, exclusive of the reserve fund. Upon
recommendation of the board of directors the members, at an an-
nual meeting, may increase the proportion of earnings to be set
apart to the reserve fund. Losses incurred in any form may be
charged to the reserve fund. Any sums recovered on items prev-
iously charged to it shall be credited to the reserve fund, except
when the reserve equals twenty per centumt of the total assets
exclusive of the reserve fund. The reserve fund, including any
excess from the time this amendment goes into effect, shall belong
to the corporation and shall be held to meet contingencies and shall
not be distributed to the members except on dissolution of the
corporation.