6.1-194.25 - (Repealed effective October 1, 2010) Mutual capital certificates.
§ 6.1-194.25. (Repealed effective October 1, 2010) Mutual capitalcertificates.
A mutual association shall have the power to issue and to sell, directly orthrough underwriters, capital certificates which shall representnonwithdrawable capital contributions, and constitute part of the reservesand net worth of the association. Such certificates shall have no votingrights, shall be subordinate to all savings accounts, debt obligations andclaims of creditors of the association and shall constitute a claim inliquidation against any reserves, surplus and other net worth accountsremaining after the payment in full of all savings accounts, debt obligationsand claims of creditors. Such capital certificates shall be entitled to thepayment of earnings prior to the allocation of any income to surplus or othernet worth accounts of the association and may be issued with a fixed rate ofearnings or with a prior claim to distribution of a specified percentage ofany net income remaining after required allocations to reserves, or acombination thereof. Losses shall be charged against capital certificatesonly after reserves, surplus, and other net worth accounts have beenexhausted.
(1985, c. 425.)