                                 CODE OF VIRGINIA

POWERS AND DUTIES OF DIRECTORS (§ 6.2-1353)

In addition to any other duties set forth in this chapter, the board of
directors shall have the following powers and duties:

1. To act upon applications for membership and upon the expulsion of a member.
The board of directors may appoint one or more membership officers to act upon
applications for membership. A record of the membership officer&#8217;s approval
or denial of membership shall be available to the board of directors for
inspection. A person denied membership by a membership officer may appeal the
denial to the board;

2. To purchase and maintain fidelity bond coverage, in accordance with
regulations of the Commission;

3. To determine from time to time the rates of interest that shall be charged on
loans and to prescribe the conditions under which interest refunds will be made;

4. To fix the amount, if any, that may be charged for initial and annual
membership fees;

5. To determine the maximum amount of shares that may be held by, and the
maximum amount which may be loaned to, any one member;

6. To declare dividends on share accounts;

7. To determine the manner in which dividends shall be paid on shares issued or
withdrawn during a dividend period;

8. To fill vacancies in the supervisory committee or in the credit committee
until the election or appointment, as the case may be, and qualification of
successors;

9. To remove any member of the board of directors failing to attend regular
meetings of the board without good cause shown for three consecutive months or
otherwise failing to perform any of the duties devolving upon him as a director;

10. To remove any member of the credit committee failing to attend three
consecutive regular meetings of the credit committee without good cause shown or
otherwise failing to perform any of the duties devolving upon him as a credit
committee member;

11. To suspend any member of the supervisory committee failing to attend regular
meetings of the supervisory committee without cause or otherwise failing to
perform any of the duties devolving upon him as a supervisory committee member,
provided that the members shall decide at a meeting held not less than 10 nor
more than 25 days after such suspension if such suspended committee member shall
be removed from or restored to the supervisory committee;

12. To have charge of the investment of the funds of the credit union, except
that the board of directors may designate an investment committee or any
qualified individual to have charge of making investments pursuant to written
policies established by the board of directors;

13. To establish policy on loans to members, which policy shall provide that the
rates, terms, and conditions on any loan or line of credit either made to, or
endorsed or guaranteed by (i) an official, (ii) an immediate family member of an
official, or (iii) any individual having a common ownership, investment, or
other pecuniary interest in a business enterprise with an official or with an
immediate family member of an official shall not be more favorable than the
rates, terms, and conditions for comparable loans or lines of credit to other
credit union members;

14. To designate a depository or depositories for the funds of the credit union;

15. To authorize the acquisition or conveyance of real property;

16. To authorize the employment and compensation of the president or person
named by the board to manage the affairs of the credit union;

17. To make adequate provisions for reserves; and

18. To perform such other duties as the members may from time to time authorize.

HISTORY: Code 1950, § 6-220; 1964, c. 75; 1966, c. 584, § 6.1-211; 1968, c.
560; 1982, c. 572; 1983, c. 158; 1984, c. 354; 1988, c. 275; 1990, c. 373, §
6.1-225.36; 2010, c. 794.