                                 CODE OF VIRGINIA

REMOVAL OF DIRECTOR OR OFFICER; PENALTY FOR ACTING AFTER REMOVAL (§ 6.2-1315)

A. Whenever any director or officer of a credit union doing business in the
Commonwealth violates any lawful order of the Commission or knowingly continues
to violate any law relating to credit unions or knowingly continues an unsafe or
unsound practice in conducting the business of a credit union, 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 the credit union. The 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 credit union
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 credit union, or has knowingly continued any unsafe or
unsound practice in conducting the business of the credit union, after he and
the board of directors of the credit union 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 the credit union. A
copy of such order shall be served upon the director or officer and upon the
credit union of which he is a director or officer, whereupon the director or
officer shall cease to be a director or officer of the credit union and shall
thereafter cease to participate in any manner in the management of the credit
union.

C. Any director or officer removed and restrained under the provisions of this
section who thereafter participates in any manner in the management of the
credit union, except as a member thereof, is guilty of a Class 6 felony.

HISTORY: 1976, c. 658, § 6.1-223.1; 1990, c. 373, § 6.1-225.9; 2010, c. 794.