                                 CODE OF VIRGINIA

REMOVAL OF DIRECTOR OR OFFICER; APPEAL; PENALTY FOR ACTING AFTER REMOVAL (§
6.2-1200)

A. Whenever any director or officer of a savings institution doing business in
the Commonwealth has knowingly continued to violate any law relating to such
savings institution or has knowingly continued any unsafe or unsound practice in
conducting the business of such institution, after the director or officer, and
the board of directors of the institution of which he is a director or officer,
have been warned in writing by the Commissioner to discontinue such violation of
law or such unsafe or unsound practice, the Commissioner shall certify the facts
to the Commission. The Commission shall thereupon enter an order requiring such
director or officer to appear before the Commission, within not less than 10
days, to show cause why he should not be removed from office and thereafter
restrained from participating in any manner in the management of such savings
institution. Such order shall contain a brief statement of the facts certified
to the Commission by the Commissioner. A copy of the order shall be served upon
the director or officer, and a copy thereof shall be sent by certified or
registered mail to each director of the savings institution affected.

B. If, after granting the accused director or officer a reasonable opportunity
to be heard, the Commission finds that he has knowingly continued to violate any
law relating to the savings institution, or has knowingly continued any unsafe
or unsound practice in conducting the business of the institution, after he and
the board of directors of the institution of which he is a director or officer
have been warned in writing by the Commissioner to discontinue such violation of
law or unsafe or unsound practice, the Commission shall enter an order removing
the director or officer from office and restraining the director or officer from
thereafter participating in any manner in the management of such savings
institution. A copy of such order shall be served upon the director or officer
and upon the savings institution of which he is a director or officer, whereupon
the director or officer shall cease to be a director or officer of the
institution and shall thereafter cease to participate in any manner in the
management of the institution.

C. Any director or officer removed and restrained under the provisions of this
section who thereafter participates in any manner in the management of such
savings institution, except as a stockholder therein, is guilty of a Class 6
felony.

HISTORY: 1985, c. 425, § 6.1-194.84; 2010, c. 794.