6.2-1336 - (Effective October 1, 2010) Loss reserve contributions.
§ 6.2-1336. (Effective October 1, 2010) Loss reserve contributions.
A. A corporation shall collect from each credit union accepted for membershipan initial contribution to loss reserve the greater of (i) $5 or (ii) anamount equal to the percentage fixed in the bylaws of the corporation, whichpercentage shall not exceed one percent, of the amount of its sharesoutstanding on the last day of the month preceding the month in whichapplication is filed. Whenever the initial contribution to loss reserve andany additions thereto paid by a credit union amount to less than theprescribed percentage of its outstanding shares of December 31, of any year,the corporation shall collect the amount of the deficiency so that the totalcontributions to loss reserve paid by each credit union is never less thanthe prescribed percentage of the amount of its outstanding shares on December31 of any year in which it is a member, except to the extent that refundshave been paid under subsection B. The amount of contribution by a creditunion shall be carried on the books of each credit union as an investment.
B. Subject to the approval of the Commission, contributions to loss reservemay be refunded to existing members whenever in the judgment of the directorsthe financial condition of the corporation warrants such action. Refunds somade shall be on the basis of a uniform percentage of the total contributionsto loss reserve paid by each credit union and shall be credited to itsreserve fund to the extent that such contribution was charged thereto.
(1974, c. 587, § 6.1-226.6; 1985, c. 365; 2010, c. 794.)