                                 CODE OF VIRGINIA

BOARD OF DIRECTORS (§ 6.2-1121)

A. The affairs of every state savings institution shall be managed by a board of
directors of not less than five nor more than 25 persons. Every director of a
stock savings institution shall be the owner in his own name and have in his
personal possession or control, shares of stock in the savings institution of
which he is a director that have a market value at the time such director is
first elected to the board of not less than $500. Such shares of stock shall be
unpledged, except as required to be pledged to a Federal Home Loan Bank, Federal
Reserve Bank, or other federal agency, and unencumbered at the time of his
becoming a director and during the whole of his term as director. If a stock
savings institution is controlled by a savings institution holding company, a
director may comply with the provisions of this section for each stock savings
institution of which he is a director by ownership, in similar manner, of shares
of capital stock of the holding company that have a market value at the time
such director is first elected to the board of not less than $500.

B. Every director of a mutual state association shall have a savings account in
the association of which he is a director, in his own name or jointly with his
spouse, of not less than $500. A mutual state savings bank shall be subject to
the requirements of subsection A, except that, in lieu of owning qualifying
shares of stock in the savings bank, each director shall maintain, while a
director, a savings account in the savings bank of not less than $500. Any
account required by this subsection shall be unpledged, except as required to be
pledged to a Federal Home Loan Bank, and unencumbered at the time of his
becoming a director and during the whole term as director. The office of any
director violating the provisions of subsection A or this subsection shall
immediately become vacant.

C. Every director of a state savings institution, within 30 days after his
election or reelection, shall take and subscribe to an oath that he (i) will
diligently and honestly perform his duties as director and (ii) is the owner and
has in his personal possession or control the shares of stock or savings account
in the savings institution required by this section and, in the case of
reelection or reappointment, that, during the whole of his immediate previous
term as a director, such stock or account was not at any time pledged or
encumbered in any other manner to secure a loan. The oath, subscribed to by the
director and certified by the officer before whom it is taken, shall be
transmitted to the Commission. Any director who fails for a period of 30 days
after his election, reelection, appointment or reappointment to take the oath
required by this subsection shall forfeit his office.

D. Within 60 days following the election or reelection of any person as a
director of a state savings institution, the savings institution shall furnish
such information to the Commission relative to the personal character,
integrity, financial condition, and personal and business background of the
director as the Commission shall from time to time prescribe. The report, under
oath, shall be signed by the director as well as by a designated officer of the
savings institution. Any person knowingly making a false statement in such a
report shall be guilty of perjury, punishable as provided in &#xA7; 18.2-434.

HISTORY: Code 1950, § 6-201.34; 1960, c. 402; 1966, c. 584, § 6.1-164; 1972,
c. 796, § 6.1-195.41; 1974, c. 77; 1985, c. 425, § 6.1-194.14; 1986, c. 509;
1991, c. 230, § 6.1-194.117; 1992, c. 552; 1994, c. 105; 2010, c. 794.