WVC 31 C- 6 - 10
§31C-6-10. Reduction in shares.
(a) Whenever the losses of any credit union, resulting from a
depreciation in value of its loans or investments or otherwise,
exceed the aggregate of its undivided earnings, reserves and
membership shares if any, so that the estimated value of its assets
is less than the total amount of share accounts, and the board of
directors determines that the credit union may be subject to
involuntary liquidation, the credit union board may propose a
reduction in shares. The credit union may by a three-fourths
majority vote of those voting on the proposition order a reduction
in the share accounts of each of its shareholders to divide the
loss in proportion to the shareholdings held by shareholders in
their respective share accounts.
(b) If the credit union thereafter realizes from such assets
a greater amount than was fixed by the order of reduction, such
excess shall be proportionately restored to the shareholders whose
assets were reduced, but only to the extent of such reduction.
Note: WV Code updated with legislation passed through the 2014 1st Special Session
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