§ 38.2-1434 Mortgage loans
Subject to the provisions of § 38.2-1437, a domestic insurer may invest in:
1. Obligations secured by first mortgages or first deeds of trust on improved unencumbered real property located in the United States;
2. Obligations secured by first mortgages or first deeds of trust upon leasehold estates on improved and otherwise unencumbered real property where: a. The leasehold interest lasts for a term of not less than ten years beyond the maturity of the loan as made or as extended; and b. The mortgagee is subrogated to all the rights of the lessee on foreclosure or on taking a deed in lieu of foreclosure; or
3. Obligations secured by first mortgages or first deeds of trust on unimproved and unencumbered real property in the United States for the purpose of financing the construction of a building or other improvements on the real property subject to the mortgage or deed of trust, if: a. These obligations mature not more than sixty months from the effective date of the mortgage or deed of trust and are the unlimited and unconditional liability of the obligor; b. The obligor provides the insurer with a completion bond for the building or improvements at the time of making the loan; and c. The insurer at or prior to the making of the loan (i) enters into an agreement with another party to provide permanent financing or (ii) agrees to provide permanent financing upon completion of the building or other improvement.
History
This law was first created in 1983. The record of its establishment is cataloged in chapter 457 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1983 “Acts” aren’t available online. It has been modified 1 time. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. That modification is as follows: in 1986, chapter 562.
1983, c. 457, § 38.1-217.37; 1986, c. 562.