HD50 - The Revision of Chapter 4 of Title 6.1 of the Code of Virginia

  • Published: 1990
  • Author: Virginia Code Commission
  • Enabling Authority: House Joint Resolution 309 (Regular Session, 1989)

Executive Summary:
House Joint Resolution No. 309, approved by the Virginia General Assembly in 1989, requested the Virginia Code Commission to undertake a revision of Chapter 4 of Title 6.1 of the Code of Virginia. The many changes made by the General Assembly to Virginia's credit union laws since the adoption of the Code of 1950 made it appropriate to reexamine the chapter as a whole, to better organize, simplify and structure the provisions of the chapter, and generally improve the clarity of the law. The requested revision has been completed, and has resulted in a recodification of Chapter 4 of Title 6.1 as Chapter 4.01 of Title 6.1.

The proposed revision consists of fourteen articles and sixty-three sections. A more detailed outline of proposed Chapter 4.01 is contained in Appendix I. A copy of the proposed revision, as approved by the Code Commission, follows this report. Drafting Notes following each section of the proposed text explain the changes.

In revising present Chapter 4 of Title 6.1 the Commission was guided by several goals:

• Simplification of language wherever possible;
• Substitution of commonly used terms for archaic language;
• Alphabetical arrangement of terms in a new definitional section;
• Comporting outdated industry practices and procedures to modern practice and procedure;
• Organizing the Act into articles to provide easier access to the Act;
• Enumerating powers of credit unions rather than continue to rely upon implied powers;
• Clarifying powers and duties of board of directors, credit and supervisory committees and establishing loan officer procedure.

A more detailed summary of the proposal reviewed by the Code Commission, the background for the need of the revision and an explanation of the changes reviewed by the Code Commission is contained in Appendix II.

Consideration was given to include within the proposed revision provisions to allow state chartered credit unions to include in their membership groups with common bonds, if located in the same geographical area, as allowed by federal law. However, the Code Commission felt that this proposal was a substantive change to existing law and would be more properly addressed in a separate piece of legislation introduced to accomplish such a change. For the same reasons the Code Commission decided not to include within the revision a proposal which would make a minor the sole owner of his share account free from the control of others.

During its deliberations the Commission was assisted by Eugene H. Farley, Jr., President of the Virginia Credit Union League, and Reginald N. Jones, counsel to the Virginia Credit Union League, who was the chief draftsman of the revision of Chapter 4 of Title 6.1. The Commission would like to thank them for their hard work and helpful counsel.