CHAPTER 256

An Act to amend and reenact § 6.1-156, as amended, of the Code of
Virginia, relating to the reserves of savings and loam associations.

[H 561]
Approved April 1, 1968

Be it enacted by the General Assembly of Virginia:
1. That § 6.1-156, as amended, of the Code of Virginia be amended and
reenacted as follows:

§ 6.1-156. Every association shall build a reserve (viz. net worth)
of at least 10% of its total resources; and for the purpose of building this
reserve it shall set aside amounts equal to at least 5% of its annual net
income during every year that the reserve is less than 10% of its total
resources, provided, however, that whenever the reserve of any associa-
tion at the end of its fiscal year is less than 5% of its share accounts at
the beginning of such fiscal year such association shall set aside at such
time and at each closing date thereafter an amount at least equal to 25%
of its net income or such part of such 25% as may then be sufficient to
cause the amount of such reserve account to equal at least 5% of its share
accounts at the beginning of said fiscal year. In the case of stock savings
and loan associations, the capital stock account, to the extent that the
capital has not been impaired, shall be treated as part of the reserve.
Provided that any association which is a member of the Federal Savings
and Loan Insurance Corporation may maintain its reserves in accordance
with the requirements of that corporation. Provided further that the
Commission may temporarily reduce the reserve requirements for an
association if it finds such reduction to be in the best interest of the asso-
ciation and its members. An association may retain its undivided profits
in such amounts as may from time to time be fixed by resolution of its
board of directors.