                                 CODE OF VIRGINIA

POWERS (§ 6.2-1302)

In addition to the powers specified or implied elsewhere in this chapter or in
the laws of the Commonwealth, a credit union shall have the power to:

1. Enter into contracts;

2. Sue and be sued;

3. Adopt, use, and display a corporate seal;

4. Receive savings from and make loans and extend lines of credit to its
members;

5. Individually or jointly with other credit unions acquire, lease as lessor or
lessee, hold, assign, pledge, exchange, repair, mortgage, hypothecate, sell,
discount, or otherwise dispose of property or assets, either in whole or in
part, as necessary or incidental to its operations, including any property or
assets obtained as a result of defaults under obligations owing to it;

6. Borrow from any source, provided that (i) a credit union shall notify and
obtain prior approval of the Commissioner if the total borrowings will exceed 50
percent of the credit union&#8217;s outstanding shares and (ii) in no event
shall the borrowings exceed 90 percent of the credit union&#8217;s outstanding
shares;

7. Sell all or substantially all of its assets or purchase all or substantially
all of the assets of another credit union, subject to the approval of the
Commission;

8. Offer related financial services, including electronic fund transfers, share
draft accounts, safe deposit boxes, leasing of tangible personal property to its
members, and correspondent arrangements with other financial institutions;

9. Hold membership in other credit unions organized under this chapter or other
applicable law, and in associations and organizations controlled by or fostering
the interest of credit unions, including a central liquidity facility organized
under state or federal law;

10. Contract with any licensed insurance company or society to insure the lives
of its members to the extent of their loans and share accounts, in whole or in
part, and to pay all or a portion of the premium therefor;

11. Engage in activities or programs as requested by any governmental authority,
subject to the approval of the Commissioner;

12. Invest its funds, operate a business, manage or deal in property when such
actions are reasonably necessary to avoid loss on a loan or investment
previously made or an obligation previously created in good faith. Such property
or business shall not be held or operated by the credit union for a period
longer than is reasonably required to protect the interest of the credit union,
unless specifically authorized by the Commissioner;

13. Make contributions to any nonprofit civic, charitable, or service
organizations;

14. Make loans to its members and to other credit unions;

15. Engage in virtual currency custody services in the manner and to the extent
provided in &#xA7; 6.2-1302.1;

16. Engage in any additional activity, service, or other practice that is
authorized for a federally chartered credit union and that has not otherwise
been authorized for a state-chartered credit union by the provisions of this
chapter or by Commission regulation, including regulations adopted pursuant to
subsection B of &#xA7; 6.2-1303, provided that (i) at least 45 calendar days
prior to engaging in any such activity, service, or practice the credit union
provides the Commissioner with written notice along with any additional
information relating to the activity, service, or practice that the Commissioner
may require and (ii) the credit union engages in the activity, service, or
practice subject to the same terms, conditions, and limitations that are
applicable to a federally chartered credit union. The Commissioner may at any
time, based upon supervisory, legal, or safety and soundness considerations,
prohibit or further restrict the activity, service, or practice.
&#8220;Activity, service, or other practice&#8221; does not include credit union
field of membership or field of membership expansion under &#xA7;&#xA7; 6.2-1327
and 6.2-1328 and any related regulations; and

17. Undertake such other activities relating to the purposes of the credit union
as its charter or bylaws may authorize, provided such activities are not
inconsistent with this chapter.

HISTORY: Code 1950, § 6-209; 1966, c. 584, § 6.1-200; 1968, c. 560; 1987, c.
622, § 6.1-330.64; 1990, c. 373, § 6.1-225.21; 2006, c. 753; 2010, c. 794;
2022, cc. 606, 607; 2023, c. 303.