6.2-1335 - (Effective October 1, 2010) Application for membership; share insurance required. - Virginia Statutes

§ 6.2-1335. (Effective October 1, 2010) Application for membership; shareinsurance required.

A. Every credit union organized:

1. Prior to January 1, 1975, the shares of which are not insured by theNational Credit Union Share Insurance Fund on that date, shall apply formembership in a corporation before January 1, 1976; and

2. On or after January 1, 1975, shall apply for membership in a corporationwithin 30 days after its organization or by January 1, 1976, whichever islater.

B. Failure to apply for membership in a corporation as required by subsectionA shall constitute grounds for the revocation by the Commission of the creditunion's certificate of authority to do business.

C. Every credit union (i) that is required by subsection A to apply formembership in a corporation and (ii) whose shares are not insured by acorporation at least in the amount of $20,000 for each member, by July 1,1976, shall not thereafter receive the savings of its members or issuethereto any other debt obligation until its shares are so insured. If theCommission determines that share insurance issued by a corporation is notavailable to a credit union and that its shares are insured by the NationalCredit Union Share Insurance Fund or under a plan of share insurance that hasbeen approved by the Commission, the credit union shall be permitted tocontinue its normal operations.

(1974, c. 587, § 6.1-226.5; 2010, c. 794.)