                                 CODE OF VIRGINIA

LOSS RESERVE CONTRIBUTIONS (§ 6.2-1336)

A. A corporation shall collect from each credit union accepted for membership an
initial contribution to loss reserve the greater of (i) $5 or (ii) an amount
equal to the percentage fixed in the bylaws of the corporation, which percentage
shall not exceed one percent, of the amount of its shares outstanding on the
last day of the month preceding the month in which application is filed.
Whenever the initial contribution to loss reserve and any additions thereto paid
by a credit union amount to less than the prescribed percentage of its
outstanding shares of December 31, of any year, the corporation shall collect
the amount of the deficiency so that the total contributions to loss reserve
paid by each credit union is never less than the prescribed percentage of the
amount of its outstanding shares on December 31 of any year in which it is a
member, except to the extent that refunds have been paid under subsection B. The
amount of contribution by a credit union shall be carried on the books of each
credit union as an investment.

B. Subject to the approval of the Commission, contributions to loss reserve may
be refunded to existing members whenever in the judgment of the directors the
financial condition of the corporation warrants such action. Refunds so made
shall be on the basis of a uniform percentage of the total contributions to loss
reserve paid by each credit union and shall be credited to its reserve fund to
the extent that such contribution was charged thereto.

HISTORY: 1974, c. 587, § 6.1-226.6; 1985, c. 365; 2010, c. 794.