{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1313.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1313.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1313.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1313.html"}],"law_id":84113,"edition_id":1,"section_id":84113,"structure_id":15645,"section_number":"6.2-1313","catch_line":"Powers of Commission in case of nonobservance of law, noncompliance with orders, insufficient reserves, or approaching insolvency; appointment of receiver","history":"1975, c. 34, \u00a7 6.1-200.2; 1988, c. 309; 1990, c. 373, \u00a7 6.1-225.8; 2010, c. 794; 2018, c. 257.","full_text":"A\n\nIf the Commission finds that (i) a credit union is in violation of a law or regulation applicable to it, (ii) a credit union is being operated in an unsafe or unsound manner, (iii) a credit union has failed to comply with a lawful order of the Commissioner, (iv) the reserve of the credit union fails to meet the requirements set forth in \u00a7 6.2-1377, or (v) a credit union is, or is about to become, insolvent, it shall give immediate notice of its finding to the officers and directors of the credit union. If necessary to conserve the assets of the credit union or protect the interests of the members of the credit union, the Commission may, after reasonable notice to the credit union and an opportunity for it to be heard, do any one or more of the following:1\n\nClose the credit union for a period not exceeding 60 days, which period may be extended for additional like periods as the Commission may deem necessary;2\n\nRequire the officers and directors of the credit union to liquidate outstanding loans;3\n\nRequire that all lawful orders of the Commission be complied with;4\n\nRequire the credit union to make reports daily or otherwise as to the results achieved in carrying out its orders;5\n\nTemporarily suspend the right of such credit union to receive any further investment in its share accounts;6\n\nGrant the right to suspend or limit withdrawals against share accounts for such period as the Commission may deem necessary; and7\n\nAppoint a conservator to take charge of the credit union and operate it pending further action by the Commission.B\n\nIf the Commission determines that (i) a credit union is approaching insolvency and no reasonable prospect for rehabilitation of the credit union exists, (ii) the Commission deems it necessary with respect to any credit union for the protection of the public interest, or (iii) a credit union has a net worth ratio of less than two percent, the Commission may close the doors of the credit union without any notice, take charge of the books, assets, and affairs of the credit union, and apply to the Circuit Court of the City of Richmond for the appointment of a receiver to take charge of the credit union’s business and assets. In the case of a federally insured credit union, the court shall appoint the National Credit Union Administration Board as receiver if it finds that the National Credit Union Administration Board is willing to accept the appointment. In the case of a credit union that is not federally insured, the court shall appoint a receiver if it finds that to do so will be in the public interest.C\n\nAs used in this article, “insolvent” or “insolvency” means that (i) a credit union is incapable of meeting the current demands of creditors or (ii) the current value of a credit union’s assets is less than the current value of the sum of its share accounts and liabilities.","order_by":null,"text":{"0":{"id":301427,"text":"If the Commission finds that (i) a credit union is in violation of a law or regulation applicable to it, (ii) a credit union is being operated in an unsafe or unsound manner, (iii) a credit union has failed to comply with a lawful order of the Commissioner, (iv) the reserve of the credit union fails to meet the requirements set forth in \u00a7 6.2-1377, or (v) a credit union is, or is about to become, insolvent, it shall give immediate notice of its finding to the officers and directors of the credit union. If necessary to conserve the assets of the credit union or protect the interests of the members of the credit union, the Commission may, after reasonable notice to the credit union and an opportunity for it to be heard, do any one or more of the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":301428,"text":"Close the credit union for a period not exceeding 60 days, which period may be extended for additional like periods as the Commission may deem necessary;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":301429,"text":"Require the officers and directors of the credit union to liquidate outstanding loans;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":301430,"text":"Require that all lawful orders of the Commission be complied with;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":301431,"text":"Require the credit union to make reports daily or otherwise as to the results achieved in carrying out its orders;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":301432,"text":"Temporarily suspend the right of such credit union to receive any further investment in its share accounts;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":301433,"text":"Grant the right to suspend or limit withdrawals against share accounts for such period as the Commission may deem necessary; and","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":301434,"text":"Appoint a conservator to take charge of the credit union and operate it pending further action by the Commission.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"B"},"8":{"id":301435,"text":"If the Commission determines that (i) a credit union is approaching insolvency and no reasonable prospect for rehabilitation of the credit union exists, (ii) the Commission deems it necessary with respect to any credit union for the protection of the public interest, or (iii) a credit union has a net worth ratio of less than two percent, the Commission may close the doors of the credit union without any notice, take charge of the books, assets, and affairs of the credit union, and apply to the Circuit Court of the City of Richmond for the appointment of a receiver to take charge of the credit union’s business and assets. In the case of a federally insured credit union, the court shall appoint the National Credit Union Administration Board as receiver if it finds that the National Credit Union Administration Board is willing to accept the appointment. In the case of a credit union that is not federally insured, the court shall appoint a receiver if it finds that to do so will be in the public interest.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A7","next_prefix":"C"},"9":{"id":301436,"text":"As used in this article, “insolvent” or “insolvency” means that (i) a credit union is incapable of meeting the current demands of creditors or (ii) the current value of a credit union’s assets is less than the current value of the sum of its share accounts and liabilities.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":15645,"edition_id":1,"name":"Supervision and Regulation","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13635,"metadata":{},"date_created":"2026-06-26 03:57:20","date_modified":"2026-06-26 03:57:20","permalink":{"id":264605,"object_type":"structure","relational_id":15645,"identifier":"2","token":"6.2\/II\/13\/2","url":"\/6.2\/II\/13\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13635,"edition_id":1,"name":"Credit Unions","identifier":"13","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:26","date_modified":"2026-06-26 03:45:26","permalink":{"id":264545,"object_type":"structure","relational_id":13635,"identifier":"13","token":"6.2\/II\/13","url":"\/6.2\/II\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":69039,"structure_id":15645,"section_number":"6.2-1308","catch_line":"Supervision and regulation by Commission","url":"\/6.2-1308\/","token":"6.2\/II\/13\/2\/6.2-1308","metadata":false},{"id":84662,"structure_id":15645,"section_number":"6.2-1309","catch_line":"Examinations","url":"\/6.2-1309\/","token":"6.2\/II\/13\/2\/6.2-1309","metadata":false},{"id":79662,"structure_id":15645,"section_number":"6.2-1310","catch_line":"Fees for examination, supervision, and regulation","url":"\/6.2-1310\/","token":"6.2\/II\/13\/2\/6.2-1310","metadata":false},{"id":75135,"structure_id":15645,"section_number":"6.2-1311","catch_line":"Reports to Commission; penalty for failure to make reports","url":"\/6.2-1311\/","token":"6.2\/II\/13\/2\/6.2-1311","metadata":false},{"id":66020,"structure_id":15645,"section_number":"6.2-1312","catch_line":"Cease and desist orders; right to hearing","url":"\/6.2-1312\/","token":"6.2\/II\/13\/2\/6.2-1312","metadata":false},{"id":84113,"structure_id":15645,"section_number":"6.2-1313","catch_line":"Powers of Commission in case of nonobservance of law, noncompliance with orders, insufficient reserves, or approaching insolvency; appointment of receiver","url":"\/6.2-1313\/","token":"6.2\/II\/13\/2\/6.2-1313","metadata":false},{"id":65334,"structure_id":15645,"section_number":"6.2-1314","catch_line":"Penalties for violation of orders of Commission","url":"\/6.2-1314\/","token":"6.2\/II\/13\/2\/6.2-1314","metadata":false},{"id":81331,"structure_id":15645,"section_number":"6.2-1315","catch_line":"Removal of director or officer; penalty for acting after removal","url":"\/6.2-1315\/","token":"6.2\/II\/13\/2\/6.2-1315","metadata":false},{"id":79105,"structure_id":15645,"section_number":"6.2-1316","catch_line":"Offenses; penalty","url":"\/6.2-1316\/","token":"6.2\/II\/13\/2\/6.2-1316","metadata":false},{"id":60747,"structure_id":15645,"section_number":"6.2-1317","catch_line":"Supervisory merger or transfer of assets of insolvent or financially unstable credit union","url":"\/6.2-1317\/","token":"6.2\/II\/13\/2\/6.2-1317","metadata":false},{"id":59800,"structure_id":15645,"section_number":"6.2-1318","catch_line":"Repealed","url":"\/6.2-1318\/","token":"6.2\/II\/13\/2\/6.2-1318","metadata":false},{"id":82764,"structure_id":15645,"section_number":"6.2-1319","catch_line":"Involuntary dissolution","url":"\/6.2-1319\/","token":"6.2\/II\/13\/2\/6.2-1319","metadata":false}],"previous_section":{"id":66020,"structure_id":15645,"section_number":"6.2-1312","catch_line":"Cease and desist orders; right to hearing","url":"\/6.2-1312\/","token":"6.2\/II\/13\/2\/6.2-1312","metadata":false},"next_section":{"id":65334,"structure_id":15645,"section_number":"6.2-1314","catch_line":"Penalties for violation of orders of Commission","url":"\/6.2-1314\/","token":"6.2\/II\/13\/2\/6.2-1314","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1313\/","history_text":"

This law was first created in 1975. The record of its establishment is cataloged in chapter 34 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1975 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1988, chapter 309; in 1990, chapter 373; in 2010, chapter 794<\/a>; in 2018, chapter 257<\/a>.<\/p>","references":[{"id":73060,"section_number":"6.2-1339","catch_line":"Duties and powers of Commission; judicial review","order_by":null,"url":"\/6.2-1339\/"}],"refers_to":[{"id":69787,"section_number":"6.2-1377","catch_line":"Maintenance of regular reserves; special reserves","order_by":null,"url":"\/6.2-1377\/"}],"permalink":{"id":264627,"object_type":"law","relational_id":84113,"identifier":"6.2-1313","token":"6.2\/II\/13\/2\/6.2-1313","url":"\/6.2-1313\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1313\/","token":"6.2\/II\/13\/2\/6.2-1313","dublin_core":{"Title":"Powers of Commission in case of nonobservance of law, noncompliance with orders, insufficient reserves, or approaching insolvency; appointment of receiver","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1313","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If the Commission<\/span> finds that (i) a credit union<\/span> is in violation of a law<\/span> or regulation applicable to it, (ii) a credit union<\/span> is being operated in an unsafe or unsound manner, (iii) a credit union<\/span> has failed to comply with a lawful order<\/span> of the Commissioner<\/span>, (iv) the reserve of the credit union<\/span> fails to meet the requirements set forth in \u00a7 6.2-1377<\/a>, or (v) a credit union<\/span> is, or is about to become, insolvent<\/span>, it shall give immediate notice of its finding<\/span> to the officers and directors of the credit union<\/span>. If necessary to conserve the assets<\/span> of the credit union<\/span> or protect the interests of the members<\/span> of the credit union<\/span>, the Commission<\/span> may, after reasonable notice to the credit union<\/span> and an opportunity for it to be heard, do any one or more of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Close the credit union<\/span> for a period not exceeding 60 days, which period may be extended for additional like periods as the Commission<\/span> may deem necessary; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Require the officers and directors of the credit union<\/span> to liquidate outstanding loans; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Require that all lawful orders<\/span> of the Commission<\/span> be complied with; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Require the credit union<\/span> to make reports daily or otherwise as to the results achieved in carrying out its orders<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Temporarily suspend the right of such credit union<\/span> to receive any further investment in its share accounts<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Grant the right to suspend or limit withdrawals against share accounts<\/span> for such period as the Commission<\/span> may deem necessary; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Appoint a conservator to take charge of the credit union<\/span> and operate it pending further action by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the Commission<\/span> determines that (i) a credit union<\/span> is approaching insolvency<\/span> and no reasonable prospect for rehabilitation of the credit union<\/span> exists, (ii) the Commission<\/span> deems it necessary with respect to any credit union<\/span> for the protection of the public interest, or (iii) a credit union<\/span> has a net worth ratio of less than two percent, the Commission<\/span> may close the doors of the credit union<\/span> without any notice, take charge of the books, assets<\/span>, and affairs of the credit union<\/span>, and apply to the Circuit<\/span> Court<\/span> of the City of Richmond for the appointment of a receiver to take charge of the credit union<\/span>’s business and assets<\/span>. In the case of a federally insured credit union<\/span>, the court<\/span> shall appoint the National Credit Union<\/span> Administration Board as receiver if it finds that the National Credit Union<\/span> Administration Board is willing to accept the appointment. In the case of a credit union<\/span> that is not federally insured, the court<\/span> shall appoint a receiver if it finds that to do so will be in the public interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> As used in this article, “insolvent<\/span>” or “insolvency<\/span>” means that (i) a credit union<\/span> is incapable of meeting the current demands of creditors<\/span> or (ii) the current value of a credit union<\/span>’s assets<\/span> is less than the current value of the sum of its share accounts<\/span> and liabilities. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPOWERS OF COMMISSION IN CASE OF NONOBSERVANCE OF LAW, NONCOMPLIANCE WITH ORDERS,\nINSUFFICIENT RESERVES, OR APPROACHING INSOLVENCY; APPOINTMENT OF RECEIVER (\u00a7\n6.2-1313)\n\nA. If the Commission finds that (i) a credit union is in violation of a law or\nregulation applicable to it, (ii) a credit union is being operated in an unsafe\nor unsound manner, (iii) a credit union has failed to comply with a lawful order\nof the Commissioner, (iv) the reserve of the credit union fails to meet the\nrequirements set forth in \u00a7 6.2-1377, or (v) a credit union is, or is about to\nbecome, insolvent, it shall give immediate notice of its finding to the officers\nand directors of the credit union. If necessary to conserve the assets of the\ncredit union or protect the interests of the members of the credit union, the\nCommission may, after reasonable notice to the credit union and an opportunity\nfor it to be heard, do any one or more of the following:\n\n 1. Close the credit union for a period not exceeding 60 days, which period may\n be extended for additional like periods as the Commission may deem necessary;\n\n 2. Require the officers and directors of the credit union to liquidate\n outstanding loans;\n\n 3. Require that all lawful orders of the Commission be complied with;\n\n 4. Require the credit union to make reports daily or otherwise as to the\n results achieved in carrying out its orders;\n\n 5. Temporarily suspend the right of such credit union to receive any further\n investment in its share accounts;\n\n 6. Grant the right to suspend or limit withdrawals against share accounts for\n such period as the Commission may deem necessary; and\n\n 7. Appoint a conservator to take charge of the credit union and operate it\n pending further action by the Commission.\n\nB. If the Commission determines that (i) a credit union is approaching\ninsolvency and no reasonable prospect for rehabilitation of the credit union\nexists, (ii) the Commission deems it necessary with respect to any credit union\nfor the protection of the public interest, or (iii) a credit union has a net\nworth ratio of less than two percent, the Commission may close the doors of the\ncredit union without any notice, take charge of the books, assets, and affairs\nof the credit union, and apply to the Circuit Court of the City of Richmond for\nthe appointment of a receiver to take charge of the credit union’s\nbusiness and assets. In the case of a federally insured credit union, the court\nshall appoint the National Credit Union Administration Board as receiver if it\nfinds that the National Credit Union Administration Board is willing to accept\nthe appointment. In the case of a credit union that is not federally insured,\nthe court shall appoint a receiver if it finds that to do so will be in the\npublic interest.\n\nC. As used in this article, “insolvent” or “insolvency”\nmeans that (i) a credit union is incapable of meeting the current demands of\ncreditors or (ii) the current value of a credit union’s assets is less\nthan the current value of the sum of its share accounts and liabilities.\n\nHISTORY: 1975, c. 34, \u00a7 6.1-200.2; 1988, c. 309; 1990, c. 373, \u00a7 6.1-225.8;\n2010, c. 794; 2018, c. 257.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}