                                 CODE OF VIRGINIA

LOANS TO MEMBERS OF CREDIT COMMITTEE; NONMEMBER LOANS (§ 6.2-1373)

A. If the borrower or endorser on a loan by a credit union is a member of the
credit committee, or a member of the board of directors if the board is serving
as the credit committee, the loan shall be approved by the supervisory committee
or a loan officer instead of by the credit committee. If the loan is fully
secured by shares, such loan may be approved by the credit committee.

B. No loan shall be made to an individual or entity that is not a member of the
credit union. If the credit committee or loan officer should knowingly approve
such a loan, the members of the credit committee shall be jointly and severally
liable, or in the case of a loan officer, he shall be individually liable, to
the credit union for the immediate repayment thereof.

HISTORY: Code 1950, § 6-226; 1956, c. 90; 1966, c. 584, § 6.1-217; 1968, c.
560; 1972, c. 192; 1975, c. 448; 1979, c. 139; 1987, c. 150; 1990, c. 373, §
6.1-225.54; 2010, c. 794.