                                 CODE OF VIRGINIA

AUDIT BY CORPORATION AND CORRECTIVE MEASURES; APPEAL (§ 6.2-1341)

A. A corporation may require independent audits and investigations of any member
credit union to ascertain its financial condition as it relates to share
insurance.

B. If the directors of a corporation ascertain evidence of carelessness, unsound
practices, or mismanagement of any member credit union that appears to adversely
affect the solvency or liquidity of the credit union or threaten loss to the
corporation, the directors shall notify the Commission and may order that
corrective action be taken or, after due notice and hearing, as provided in the
bylaws, revoke the credit union&#8217;s membership in the corporation.

C. If a member credit union is aggrieved by any decision, action, or order of
the corporation, it may appeal the decision, action, or order to the Commission.
The Commission may modify, reverse, or affirm such decision, action, or order.

HISTORY: 1974, c. 587, § 6.1-226.11; 2010, c. 794.