{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-987.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-987.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-987.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-987.html"}],"law_id":60972,"edition_id":1,"section_id":60972,"structure_id":14577,"section_number":"13.1-987","catch_line":"Restrictions on powers of corporation","history":"Code 1950, \u00a7 13.1-145; 1960, c. 80; 1972, c. 693; 1985, c. 522.","full_text":"The powers of a corporation shall be subject to the following restrictions:\n\n1\n\nIt shall not approve any application for a loan until the applicant shall have shown that he has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan.2\n\nIt shall not incur any secondary liability for the debts of others, but may assume primary liability therefor.3\n\nIt shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due, except that it may give security or priority on loans made to it by any federal agency or instrumentality or by any agency or instrumentality of the Commonwealth of Virginia without securing all loans made to it.","order_by":null,"text":{"0":{"id":222970,"text":"The powers of a corporation shall be subject to the following restrictions:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":222971,"text":"It shall not approve any application for a loan until the applicant shall have shown that he has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":222972,"text":"It shall not incur any secondary liability for the debts of others, but may assume primary liability therefor.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":222973,"text":"It shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due, except that it may give security or priority on loans made to it by any federal agency or instrumentality or by any agency or instrumentality of the Commonwealth of Virginia without securing all loans made to it.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":14577,"edition_id":1,"name":"Industrial Development 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powers of corporation","url":"\/13.1-987\/","token":"13.1\/11\/13.1-987","metadata":false},{"id":58421,"structure_id":14577,"section_number":"13.1-988","catch_line":"Acquisition, transfer, etc., of securities and shares of corporation","url":"\/13.1-988\/","token":"13.1\/11\/13.1-988","metadata":false},{"id":80429,"structure_id":14577,"section_number":"13.1-989","catch_line":"Membership in corporation; loans from members","url":"\/13.1-989\/","token":"13.1\/11\/13.1-989","metadata":false},{"id":85284,"structure_id":14577,"section_number":"13.1-990","catch_line":"Shares and shareholders","url":"\/13.1-990\/","token":"13.1\/11\/13.1-990","metadata":false},{"id":72676,"structure_id":14577,"section_number":"13.1-991","catch_line":"Directors","url":"\/13.1-991\/","token":"13.1\/11\/13.1-991","metadata":false},{"id":72431,"structure_id":14577,"section_number":"13.1-992","catch_line":"Executive 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The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1960, chapter 80; in 1972, chapter 693; in 1985, chapter 522.<\/p>","references":false,"refers_to":false,"permalink":{"id":148303,"object_type":"law","relational_id":60972,"identifier":"13.1-987","token":"13.1\/11\/13.1-987","url":"\/13.1-987\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-987\/","token":"13.1\/11\/13.1-987","dublin_core":{"Title":"Restrictions on powers of corporation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-987","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The powers of a corporation shall be subject to the following restrictions:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> It shall not approve any application for a loan until the applicant shall have shown that he has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> It shall not incur any secondary liability for the debts of others, but may assume primary liability therefor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> It shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due, except that it may give security or priority on loans made to it by any federal agency or instrumentality or by any agency or instrumentality of the Commonwealth of Virginia without securing all loans made to it. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRESTRICTIONS ON POWERS OF CORPORATION (\u00a7 13.1-987)\n\nThe powers of a corporation shall be subject to the following restrictions:\n\n1. It shall not approve any application for a loan until the applicant shall\nhave shown that he has applied to a financial institution that could lawfully\nlend the amount of money sought and that the financial institution has refused\nin writing to make the requested loan.\n\n2. It shall not incur any secondary liability for the debts of others, but may\nassume primary liability therefor.\n\n3. It shall not give security for any loan made to it unless all loans to it are\nsecured ratably in proportion to unpaid balances due, except that it may give\nsecurity or priority on loans made to it by any federal agency or\ninstrumentality or by any agency or instrumentality of the Commonwealth of\nVirginia without securing all loans made to it.\n\nHISTORY: Code 1950, \u00a7 13.1-145; 1960, c. 80; 1972, c. 693; 1985, c. 522.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}