                                 CODE OF VIRGINIA

VOLUNTARY MERGER (§ 6.2-1344)

A. A credit union organized under this chapter may merge, with the approval of
the Commission, with one or more other credit unions, state or federal. In any
case in which the surviving credit union will be a Virginia state-chartered
credit union, a merger application, accompanied by an application fee of $300,
shall be filed with the Commission. The Commission shall approve the application
if the Commission finds that:

   1. The field of membership of the credit union which is proposed to result
   from the merger satisfies the requirements of subsection B of &#xA7; 6.2-1327,
   unless the merger application is exempt from this condition pursuant to
   subsection B;

   2. The plan of merger will promote the best interests of the members of the
   credit unions; and

   3. The members of the merging credit unions have approved the plan of merger
   in accordance with applicable laws and regulations. Notwithstanding subsection
   D of &#xA7; 13.1-895, the members of a Virginia state-chartered credit union
   may authorize a plan of merger by vote of at least a majority of all votes
   cast thereon at an annual or special meeting at which a quorum is present.
   Notwithstanding the terms of &#xA7; 13.1-895, in a merger where a Virginia
   credit union will be the resulting credit union, the adoption of the plan of
   merger by the board of directors of that credit union shall be sufficient
   approval of the plan, and approval of the plan of merger by the members of
   that credit union shall not be required. Notice of the meeting may be given in
   a manner prescribed in the articles of incorporation or bylaws,
   notwithstanding the terms of &#xA7; 13.1-842 relating to the manner of notice.
   A federal credit union merging with a state credit union may give notice to
   its members as prescribed by federal regulation.

B. The condition set forth in subdivision A 1 shall not apply to a merger of two
Virginia state-chartered credit unions, and notwithstanding subsection B of
&#xA7; 6.2-1327 the field of membership of the surviving credit union may be
composed of a combination of the fields of membership of the merging credit
unions, if (i) at least one of the merging credit unions has fewer than 35,000
active members on the date the application for merger is filed with the
Commission and (ii) neither of the merging credit unions has been a party to a
merger pursuant to this subsection within the 24 months preceding the date the
application for merger is filed with the Commission.

C. If the Commission finds that the applicable requirements of subsection A have
been met and all required fees have been paid, it shall approve the merger and
issue a certificate of merger, which shall be admitted to record in its office
and in the office for the recording of deeds in the city or county in which the
registered office of each credit union is located. No such further recordation
shall be required in the City of Richmond or the Counties of Chesterfield or
Henrico.

D. Upon the issuance of the certificate of merger the provisions of &#xA7;
13.1-897, mutatis mutandis, shall become effective.

E. For the purposes of this section, a member entitled to vote may vote in
person or, unless the articles of incorporation or bylaws otherwise provide, by
proxy. A member may appoint a proxy to vote or otherwise act for him by signing
an appointment form. An appointment of a proxy becomes effective when received
by the secretary or other officer or agent authorized to tabulate votes. An
appointment is valid for 11 months unless a different period is expressly
provided in the appointment form or the appointment is revoked by the member.

HISTORY: 1980, c. 182, § 6.1-200.3; 1983, c. 465; 1988, c. 152; 1990, c. 373,
§ 6.1-225.27; 1999, c. 63; 2007, c. 925; 2010, c. 794; 2016, cc. 396, 695.