Virginia § 6.2-1132 - Mutual capital certificates
Full text of Virginia Code of Virginia § 6.2-1132 — Mutual capital certificates, with citation guidance and answers to common questions.
§ 6.2-1132. Mutual capital certificates
A. A mutual savings institution shall have the power to issue and to sell, directly or through underwriters, capital certificates that (i) represent nonwithdrawable capital contributions and (ii) constitute part of the reserves and net worth of the institution.
B. Capital certificates:
1. Shall have no voting rights;
2. Shall be subordinate to all savings accounts, debt obligations and claims of creditors of the institution;
3. Shall constitute a claim in liquidation against any reserves, surplus, and other net worth accounts remaining after the payment in full of all savings accounts, debt obligations, and claims of creditors;
4. Shall be entitled to the payment of earnings prior to the allocation of any income to surplus or other net worth accounts of the institution; and
5. May be issued with a fixed rate of earnings or with a prior claim to distribution of a specified percentage of any net income remaining after required allocations to reserves, or a combination thereof.
C. Losses shall be charged against capital certificates only after reserves, surplus, and other net worth accounts have been exhausted.
1985, c. 425, § 6.1-194.25; 2010, c. 794.
Frequently Asked Questions About Virginia § 6.2-1132
What does Code of Virginia § 6.2-1132 cover?
Section 6.2-1132 ("Mutual capital certificates") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 6.2-1132?
A common citation format is "Code of Virginia § 6.2-1132" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 6.2-1132 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.