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Can you summarize 10 VAAC Agency 5, Chapter 40?
State Corporation Commission > Credit Unions
Short Summary
The first legal document governs the provision of employee benefits for state-chartered credit unions. It allows state-chartered credit unions to provide reasonable employee benefits, including retirement benefits, to their employees and officers. The document also outlines the investment options and compliance requirements for employee benefit plans and defined benefit plans. State-chartered credit unions are not considered fiduciaries under the Employee Retirement Income Security Act (ERISA) and the regulations adopted by the U.S. Department of Labor. The second legal document governs the investment and loan activities of state-chartered credit unions and credit union service organizations (CUSOs). It sets restrictions and requirements for investments, loans, and operations of state-chartered credit unions and CUSOs. The document specifies the entities in which state-chartered credit unions are not allowed to invest or make loans, and the conditions under which exceptions can be made. It also mandates written notice to the Commissioner of Financial Institutions for investments in or loans to CUSOs. The document sets limits on the percentage of shares and reserves that state-chartered credit unions can invest in CUSOs and outlines permissible activities and services for CUSOs. It addresses the separation and independence of state-chartered credit unions and CUSOs and prohibits certain conflicts of interest. The third legal document prescribes the annual fees that state-chartered credit unions must pay for examination, supervision, and regulation. The fees are determined based on the credit union’s total assets and are calculated according to a schedule. The document provides different rates for different asset ranges and requires fees to be applied to even $1,000 units. The fourth legal document outlines the surety bond requirements for credit unions operating under Chapter 13 of Title 6.2 of the Code of Virginia. It mandates that every credit union must obtain and maintain a blanket surety bond on all officials, committee members, and employees. The bond amount is determined based on the credit union’s total assets, and the maximum deductibles are specified. The document also requires written notice to the Commissioner of Financial Institutions for bond cancellations. The fifth legal document provides definitions for various terms used in the context of credit unions. It defines terms such as ‘Credit union service organization’ or ‘CUSO’, ‘GAAP’, ‘Immediate family member’, ‘Officials’, and ‘Reserves’. The sixth legal document allows state-chartered credit unions to provide certain services to individuals within their field of membership, including selling negotiable checks, money orders, and other money transfer instruments, as well as cashing checks and receiving electronic fund transfers for a fee. The seventh legal document governs the designation of low-income credit unions and outlines their additional powers. It specifies the criteria for low-income designation and the additional powers granted to low-income credit unions. The document also allows the Commissioner of Financial Institutions to impose additional terms or conditions based on supervisory, legal, or safety and soundness considerations. It outlines reporting requirements and procedures for appeal and removal of the low-income designation.
Whom does it apply to?
State-chartered credit unions, credit union service organizations (CUSOs), officials, committee members, employees, low-income credit unions
What does it govern?
Provision of employee benefits for state-chartered credit unions, investment and loan activities of state-chartered credit unions and credit union service organizations (CUSOs), annual fees for examination, supervision, and regulation of state-chartered credit unions, surety bond requirements for credit unions, definitions for various terms used in the context of credit unions, services provided by state-chartered credit unions, designation of low-income credit unions and their additional powers
What are exemptions?
State-chartered credit unions are not considered fiduciaries under the Employee Retirement Income Security Act (ERISA) and the regulations adopted by the U.S. Department of Labor.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Virginia