                                 CODE OF VIRGINIA

CREDIT UNION NEED NOT INQUIRE AS TO FIDUCIARY FUNDS USED TO PURCHASE SHARES IN
FIDUCIARY&#8217;S PERSONAL ACCOUNT (§ 6.2-1369)

A. If any fiduciary or agent purchases shares in a credit union in his own name
(i) with share drafts or other instruments drawn by him upon an account in his
own name as fiduciary, (ii) with share drafts or other instruments drawn by him
upon an account in the name of his principal, if he is empowered to draw share
drafts or other instruments thereto, or (iii) with share drafts or other
instruments payable to his principal and endorsed by him as fiduciary, the
credit union issuing such shares shall not be bound to inquire whether the
fiduciary is committing thereby a breach of his obligation as fiduciary.

B. The credit union is authorized to pay the amount of the shares issued or any
part thereof upon the withdrawal by the fiduciary without being liable to the
principal, unless the credit union receives payment for the shares or pays the
withdrawal (i) with the actual knowledge that the fiduciary, in purchasing such
shares or in making such withdrawal, is committing a breach of his obligation as
a fiduciary, or (ii) with knowledge of such facts that its action in issuing the
shares or paying the withdrawal amounts to bad faith.

HISTORY: 2000, c. 744, § 6.1-225.50:2; 2010, c. 794.