6.2-1315 - (Effective October 1, 2010) Removal of director or officer; penalty for acting after removal.
§ 6.2-1315. (Effective October 1, 2010) Removal of director or officer;penalty for acting after removal.
A. Whenever any director or officer of a credit union doing business in theCommonwealth violates any lawful order of the Commission or knowinglycontinues to violate any law relating to credit unions or knowingly continuesan unsafe or unsound practice in conducting the business of a credit union,after the director or officer, and the board of directors of the institutionof which he is a director or officer, have been warned in writing by theCommissioner to discontinue such violation of law or such unsafe or unsoundpractice, the Commissioner shall certify the facts to the Commission. TheCommission shall thereupon enter an order requiring such director or officerto appear before the Commission, within not less than 10 days, to show causewhy he should not be removed from office and thereafter restrained fromparticipating in any manner in the management of the credit union. The ordershall contain a brief statement of the facts certified to the Commission bythe Commissioner. A copy of the order shall be served upon the director orofficer, and a copy thereof shall be sent by certified or registered mail toeach director of the credit union affected.
B. If, after granting the accused director or officer a reasonableopportunity to be heard, the Commission finds that he has knowingly continuedto violate any law relating to the credit union, or has knowingly continuedany unsafe or unsound practice in conducting the business of the creditunion, after he and the board of directors of the credit union of which he isa director or officer have been warned in writing by the Commissioner todiscontinue such violation of law or unsafe or unsound practice, theCommission shall enter an order removing the director or officer from officeand restraining the director or officer from thereafter participating in anymanner in the management of the credit union. A copy of such order shall beserved upon the director or officer and upon the credit union of which he isa director or officer, whereupon the director or officer shall cease to be adirector or officer of the credit union and shall thereafter cease toparticipate in any manner in the management of the credit union.
C. Any director or officer removed and restrained under the provisions ofthis section who thereafter participates in any manner in the management ofthe credit union, except as a member thereof, is guilty of a Class 6 felony.
(1976, c. 658, § 6.1-223.1; 1990, c. 373, § 6.1-225.9; 2010, c. 794.)