SENATE BILL NO. 530 Offered January 11, 2006 Prefiled January 11, 2006 A BILL to amend and reenact § 6.1-225.20 of the Code of Virginia, relating to credit union offices. ---------- Patron-- Newman ---------- Referred to Committee on Commerce and Labor ----------

Be it enacted by the General Assembly of Virginia:

1.  That § 6.1-225.20 of the Code of Virginia is amended and reenacted as follows:

§ 6.1-225.20. Establishing, moving, closing offices.

A. A credit union may maintain service facilities at locations other than its main office if the maintenance of such offices is reasonably necessary to serve its members, subject to the approval of the Commission. An application to establish such a service facility, accompanied by a fee of $200, shall be made on a form prescribed by the Commission. The Commission shall approve the establishment of the proposed service facility if it appears that the interest of the members of the applicant will be served thereby and that such establishment will not impair the financial condition of the applicant or any other credit union. For the purpose of this section, a service facility means a physical facility that is wholly owned by the applicant.

B. A credit union may (i) contract with one or more other credit unions subject to this chapter or organized under the laws of the United States or any other state to provide for the operation of one or more shared service facilities or (ii) provide for its members to have the use of one or more shared service facilities by contracting with a credit union service organization approved by the Commissioner for such purpose. A participating credit union may also invest in the credit union service organization. For purposes of this subsection, "credit union service organization" shall have the meaning contained in subdivision 10 of § 6.1-225.57. A credit union shall give prior written notice to the Commissioner of its participation in each shared service facility or credit union service organization. Notice to the Commissioner of a credit union's participation in a credit union service organization shall satisfy the requirement of subsection C that the Commissioner be notified of the establishment of an office, if the credit union service organization has notified the Commissioner of the establishment of the shared service facility.

The authority of the Commission and the Commissioner to supervise and regulate credit unions, as set forth in Article 2 (§§ 6.1-225.3 through 6.1-225.12) of this chapter, shall extend to any shared service facility and any credit union service organization that is involved in the operation of a shared service facility which provides service to credit unions organized under this chapter, except that such authority shall not extend to the assets, records, books, and accounts of any federal credit union or credit union organized under the laws of another state.

C. A credit union may change the location of its main office, a service facility, or office, and may close any such office, provided it gives at least thirty days' prior written notice thereof to the Commissioner in such form as he may prescribe. A credit union shall notify the Commissioner in writing within ten days after it establishes, relocates, or closes any office. A credit union shall notify the Commissioner of its withdrawal from participation in any shared service facility within ten days of such withdrawal.