6.2-1346 - (Effective October 1, 2010) Conversion of federal credit union to state credit union. - Virginia Statutes

§ 6.2-1346. (Effective October 1, 2010) Conversion of federal credit union tostate credit union.

A credit union organized under the laws of the United States and authorizedto do business in the Commonwealth may convert to a credit union organizedunder the laws of the Commonwealth by the following procedure:

1. The directors of the federal credit union shall organize a corporationunder this chapter and the Virginia Nonstock Corporation Act (§ 13.1-801 etseq.) for the purpose set forth in § 6.2-1320;

2. The new corporation shall apply for a certificate of authority to dobusiness as a credit union as provided in § 6.2-1321;

3. The federal credit union shall follow the procedures set forth in § 125(a), of the Federal Credit Union Act (12 U.S.C. § 1771), as it now exists ormay hereafter be amended, for conversion;

4. Upon completion of the requirements of the Federal Credit Union Act, theauthorized officers of the federal credit union shall execute a certificatesetting forth the procedures followed, the number of members eligible to voteand the number voting in favor of the plan of conversion and file saidcertificate with the Commission; and

5. When the Commission has determined that all of the requirements of thissection have been complied with, and that the criteria of § 6.2-1321 havebeen met, the Commission shall authorize the state-chartered credit union tocommence business as of the date it ceases to be a federal credit union. Thesuccessor state-chartered credit union shall be vested with all of the assetsand shall continue to be responsible for all of the obligations of thefederal credit union to the same extent as though the conversion had nottaken place.

(1984, c. 352, § 6.1-200.6; 1990, c. 373, § 6.1-225.29; 2010, c. 794.)