6.2-1353 - (Effective October 1, 2010) Powers and duties of directors.

§ 6.2-1353. (Effective October 1, 2010) Powers and duties of directors.

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

1. To act upon applications for membership and upon the expulsion of amember. The board of directors may appoint one or more membership officers toact upon applications for membership. A record of the membership officer'sapproval or denial of membership shall be available to the board of directorsfor inspection. A person denied membership by a membership officer may appealthe denial to the board;

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

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

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

5. To determine the maximum amount of shares that may be held by, and themaximum 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 To determine the manner in which dividends shall be paid on shares issuedor withdrawn during a dividend period;

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

9. To remove any member of the board of directors failing to attend regularmeetings of the board without good cause shown for three consecutive monthsor otherwise failing to perform any of the duties devolving upon him as adirector;

10. To remove any member of the credit committee failing to attend threeconsecutive regular meetings of the credit committee without good cause shownor otherwise failing to perform any of the duties devolving upon him as acredit committee member;

11. To suspend any member of the supervisory committee failing to attendregular meetings of the supervisory committee without cause or otherwisefailing to perform any of the duties devolving upon him as a supervisorycommittee member, provided that the members shall decide at a meeting heldnot less than 10 nor more than 25 days after such suspension if suchsuspended committee member shall be removed from or restored to thesupervisory committee;

12. To have charge of the investment of the funds of the credit union, exceptthat the board of directors may designate an investment committee or anyqualified individual to have charge of making investments pursuant to writtenpolicies established by the board of directors;

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

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

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

16. To authorize the employment and compensation of the president or personnamed 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 timeauthorize.

(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.)