{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1317.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1317.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1317.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1317.html"}],"law_id":60747,"edition_id":1,"section_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","history":"1982, c. 571, \u00a7 6.1-200.4; 1985, c. 364; 1990, c. 373, \u00a7 6.1-225.10; 2010, c. 794; 2021, Sp. Sess. I, c. 143.","full_text":"A\n\nIf the Commission finds that (i) a state credit union is insolvent or financially unstable and (ii) its merger into another credit union is desirable for the protection of its members, and if the board of directors of both credit unions approves a plan of merging such state credit union into another state credit union or a federal credit union, compliance with § 13.1-895 shall be dispensed with as to both credit unions and the approval of the Commission of such plan of merger shall be the equivalent of approval by more than two-thirds of the members of both credit unions for all purposes of Article 11 (§ 13.1-893.1 et seq.) and Article 12 (§ 13.1-899 et seq.) of Chapter 10 of Title 13.1.B\n\nIf the Commission finds that (i) a state credit union is insolvent or financially unstable and (ii) the acquisition of its assets by another state credit union or a federal credit union is in the best interests of its members, it may, with the consent of the board of directors of both credit unions as to the terms and conditions of such transfer, including the assumption of all or certain liabilities, enter an order transferring some or all of the assets of such state credit union to such other state or federal credit union and compliance with the provisions of §§ 13.1-899 and 13.1-900 shall not be required.C\n\nIn the case either of such a merger or of such a sale of assets, the Commission shall require that prompt notice of its findings of insolvency or financial instability and of the merger or sale of assets be sent to the members of record of the insolvent or financially unstable state credit union for the purpose of providing such members an opportunity to challenge the finding that the state credit union is insolvent or financially unstable. The relevant books and records of such credit union shall be preserved and be made available to such members for a period of 30 days after such notice is sent. The Commission’s finding of insolvency or financial instability shall become final if a hearing before the Commission is not requested by any such member within such 30-day period.D\n\nIf, after such hearing provided in subsection C, the Commission finds that the state credit union is solvent and financially stable, it shall rescind its order entered pursuant to subsection A or subsection B and the merger or transfer of assets shall be rescinded. After such hearing, however, if the Commission finds that the state credit union is insolvent or financially unstable, its order shall be final.E\n\nNotwithstanding the provisions of subsection B of § 6.2-1327, or any other provisions of this chapter, the Commission may order a merger pursuant to subsection A or a sale of assets pursuant to subsection B. The continuing credit union, upon approval of the Commission, shall amend its bylaws to incorporate the specified common bond of interest of the insolvent or financially unstable credit union.F\n\nThe Commission may authorize a financial institution whose deposits are insured by a federal agency to purchase any of the assets of or assume any of the liabilities of a credit union that is insolvent or financially unstable, provided that prior to exercising this authority the Commission shall use every reasonable effort to effect a merger or consolidation with or purchase and assumption by another credit union and shall have been advised by the insuring organization that it cannot effect a merger, consolidation, or other disposition of the insolvent or financially unstable credit union acceptable to the Commission.","order_by":null,"text":{"0":{"id":222072,"text":"If the Commission finds that (i) a state credit union is insolvent or financially unstable and (ii) its merger into another credit union is desirable for the protection of its members, and if the board of directors of both credit unions approves a plan of merging such state credit union into another state credit union or a federal credit union, compliance with § 13.1-895 shall be dispensed with as to both credit unions and the approval of the Commission of such plan of merger shall be the equivalent of approval by more than two-thirds of the members of both credit unions for all purposes of Article 11 (§ 13.1-893.1 et seq.) and Article 12 (§ 13.1-899 et seq.) of Chapter 10 of Title 13.1.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":222073,"text":"If the Commission finds that (i) a state credit union is insolvent or financially unstable and (ii) the acquisition of its assets by another state credit union or a federal credit union is in the best interests of its members, it may, with the consent of the board of directors of both credit unions as to the terms and conditions of such transfer, including the assumption of all or certain liabilities, enter an order transferring some or all of the assets of such state credit union to such other state or federal credit union and compliance with the provisions of §§ 13.1-899 and 13.1-900 shall not be required.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":222074,"text":"In the case either of such a merger or of such a sale of assets, the Commission shall require that prompt notice of its findings of insolvency or financial instability and of the merger or sale of assets be sent to the members of record of the insolvent or financially unstable state credit union for the purpose of providing such members an opportunity to challenge the finding that the state credit union is insolvent or financially unstable. The relevant books and records of such credit union shall be preserved and be made available to such members for a period of 30 days after such notice is sent. The Commission’s finding of insolvency or financial instability shall become final if a hearing before the Commission is not requested by any such member within such 30-day period.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":222075,"text":"If, after such hearing provided in subsection C, the Commission finds that the state credit union is solvent and financially stable, it shall rescind its order entered pursuant to subsection A or subsection B and the merger or transfer of assets shall be rescinded. After such hearing, however, if the Commission finds that the state credit union is insolvent or financially unstable, its order shall be final.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":222076,"text":"Notwithstanding the provisions of subsection B of § 6.2-1327, or any other provisions of this chapter, the Commission may order a merger pursuant to subsection A or a sale of assets pursuant to subsection B. The continuing credit union, upon approval of the Commission, shall amend its bylaws to incorporate the specified common bond of interest of the insolvent or financially unstable credit union.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":222077,"text":"The Commission may authorize a financial institution whose deposits are insured by a federal agency to purchase any of the assets of or assume any of the liabilities of a credit union that is insolvent or financially unstable, provided that prior to exercising this authority the Commission shall use every reasonable effort to effect a merger or consolidation with or purchase and assumption by another credit union and shall have been advised by the insuring organization that it cannot effect a merger, consolidation, or other disposition of the insolvent or financially unstable credit union acceptable to the Commission.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1317\/","history_text":"

This law was first created in 1982. The record of its establishment is cataloged in chapter 571 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 1982 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1985, chapter 364; in 1990, chapter 373; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":[{"id":65123,"section_number":"13.1-893.1","catch_line":"Definitions","order_by":null,"url":"\/13.1-893.1\/"},{"id":82018,"section_number":"13.1-895","catch_line":"Action on plan of merger","order_by":null,"url":"\/13.1-895\/"},{"id":61580,"section_number":"13.1-899","catch_line":"Sale of assets in regular course of business","order_by":null,"url":"\/13.1-899\/"},{"id":54289,"section_number":"13.1-900","catch_line":"Sale of assets other than in regular course of business","order_by":null,"url":"\/13.1-900\/"},{"id":59413,"section_number":"6.2-1327","catch_line":"Membership defined; field of membership","order_by":null,"url":"\/6.2-1327\/"}],"permalink":{"id":264643,"object_type":"law","relational_id":60747,"identifier":"6.2-1317","token":"6.2\/II\/13\/2\/6.2-1317","url":"\/6.2-1317\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1317\/","token":"6.2\/II\/13\/2\/6.2-1317","dublin_core":{"Title":"Supervisory merger or transfer of assets of insolvent or financially unstable credit union","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1317","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If the Commission<\/span> finds that (i) a state credit union<\/span> is insolvent or financially unstable and (ii) its merger into another credit union<\/span> is desirable for the protection of its members<\/span>, and if the board of directors of both credit unions<\/span> approves a plan of merging such state credit union<\/span> into another state credit union<\/span> or a federal credit union<\/span>, compliance with § 13.1-895<\/a> shall be dispensed with as to both credit unions<\/span> and the approval of the Commission<\/span> of such plan of merger shall be the equivalent of approval by more than two-thirds of the members<\/span> of both credit unions<\/span> for all purposes of Article 11 (§ 13.1-893.1<\/a> et seq.) and Article 12 (§ 13.1-899<\/a> et seq.) of Chapter 10 of Title 13.1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the Commission<\/span> finds that (i) a state credit union<\/span> is insolvent or financially unstable and (ii) the acquisition of its assets<\/span> by another state credit union<\/span> or a federal credit union<\/span> is in the best interests of its members<\/span>, it may, with the consent of the board of directors of both credit unions<\/span> as to the terms and conditions of such transfer, including the assumption of all or certain liabilities, enter an order<\/span> transferring some or all of the assets<\/span> of such state credit union<\/span> to such other state or federal credit union<\/span> and compliance with the provisions of §§ 13.1-899<\/a> and 13.1-900<\/a> shall not be required. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In the case either of such a merger or of such a sale of assets<\/span>, the Commission<\/span> shall require that prompt notice of its findings<\/span> of insolvency or financial instability and of the merger or sale of assets<\/span> be sent to the members<\/span> of record of the insolvent or financially unstable state credit union<\/span> for the purpose of providing such members<\/span> an opportunity to challenge the finding<\/span> that the state credit union<\/span> is insolvent or financially unstable. The relevant books and records of such credit union<\/span> shall be preserved and be made available to such members<\/span> for a period of 30 days after such notice is sent. The Commission<\/span>’s finding<\/span> of insolvency or financial instability shall become final if a hearing<\/span> before the Commission<\/span> is not requested by any such member<\/span> within such 30-day period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If, after such hearing<\/span> provided in subsection C, the Commission<\/span> finds that the state credit union<\/span> is solvent and financially stable, it shall rescind its order<\/span> entered pursuant to subsection A or subsection B and the merger or transfer of assets<\/span> shall be rescinded. After such hearing<\/span>, however, if the Commission<\/span> finds that the state credit union<\/span> is insolvent or financially unstable, its order<\/span> shall be final. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Notwithstanding the provisions of subsection B of § 6.2-1327<\/a>, or any other provisions of this chapter, the Commission<\/span> may order<\/span> a merger pursuant to subsection A or a sale of assets<\/span> pursuant to subsection B. The continuing credit union<\/span>, upon approval of the Commission<\/span>, shall amend<\/span> its bylaws to incorporate the specified common bond<\/span> of interest of the insolvent or financially unstable credit union<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Commission<\/span> may authorize a financial institution<\/span> whose deposits are insured by a federal agency to purchase any of the assets<\/span> of or assume any of the liabilities of a credit union<\/span> that is insolvent or financially unstable, provided that prior to exercising this authority the Commission<\/span> shall use every reasonable effort to effect a merger or consolidation<\/span> with or purchase and assumption by another credit union<\/span> and shall have been advised by the insuring organization<\/span> that it cannot effect a merger, consolidation<\/span>, or other disposition<\/span> of the insolvent or financially unstable credit union<\/span> acceptable to the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSUPERVISORY MERGER OR TRANSFER OF ASSETS OF INSOLVENT OR FINANCIALLY UNSTABLE\nCREDIT UNION (\u00a7 6.2-1317)\n\nA. If the Commission finds that (i) a state credit union is insolvent or\nfinancially unstable and (ii) its merger into another credit union is desirable\nfor the protection of its members, and if the board of directors of both credit\nunions approves a plan of merging such state credit union into another state\ncredit union or a federal credit union, compliance with § 13.1-895 shall be\ndispensed with as to both credit unions and the approval of the Commission of\nsuch plan of merger shall be the equivalent of approval by more than two-thirds\nof the members of both credit unions for all purposes of Article 11 (§\n13.1-893.1 et seq.) and Article 12 (§ 13.1-899 et seq.) of Chapter 10 of\nTitle 13.1.\n\nB. If the Commission finds that (i) a state credit union is insolvent or\nfinancially unstable and (ii) the acquisition of its assets by another state\ncredit union or a federal credit union is in the best interests of its members,\nit may, with the consent of the board of directors of both credit unions as to\nthe terms and conditions of such transfer, including the assumption of all or\ncertain liabilities, enter an order transferring some or all of the assets of\nsuch state credit union to such other state or federal credit union and\ncompliance with the provisions of §§ 13.1-899 and 13.1-900 shall not\nbe required.\n\nC. In the case either of such a merger or of such a sale of assets, the\nCommission shall require that prompt notice of its findings of insolvency or\nfinancial instability and of the merger or sale of assets be sent to the members\nof record of the insolvent or financially unstable state credit union for the\npurpose of providing such members an opportunity to challenge the finding that\nthe state credit union is insolvent or financially unstable. The relevant books\nand records of such credit union shall be preserved and be made available to\nsuch members for a period of 30 days after such notice is sent. The\nCommission’s finding of insolvency or financial instability shall become\nfinal if a hearing before the Commission is not requested by any such member\nwithin such 30-day period.\n\nD. If, after such hearing provided in subsection C, the Commission finds that\nthe state credit union is solvent and financially stable, it shall rescind its\norder entered pursuant to subsection A or subsection B and the merger or\ntransfer of assets shall be rescinded. After such hearing, however, if the\nCommission finds that the state credit union is insolvent or financially\nunstable, its order shall be final.\n\nE. Notwithstanding the provisions of subsection B of § 6.2-1327, or any\nother provisions of this chapter, the Commission may order a merger pursuant to\nsubsection A or a sale of assets pursuant to subsection B. The continuing credit\nunion, upon approval of the Commission, shall amend its bylaws to incorporate\nthe specified common bond of interest of the insolvent or financially unstable\ncredit union.\n\nF. The Commission may authorize a financial institution whose deposits are\ninsured by a federal agency to purchase any of the assets of or assume any of\nthe liabilities of a credit union that is insolvent or financially unstable,\nprovided that prior to exercising this authority the Commission shall use every\nreasonable effort to effect a merger or consolidation with or purchase and\nassumption by another credit union and shall have been advised by the insuring\norganization that it cannot effect a merger, consolidation, or other disposition\nof the insolvent or financially unstable credit union acceptable to the\nCommission.\n\nHISTORY: 1982, c. 571, \u00a7 6.1-200.4; 1985, c. 364; 1990, c. 373, \u00a7 6.1-225.10;\n2010, c. 794; 2021, Sp. Sess. I, c. 143.","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}}