{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-989.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-989.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-989.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-989.html"}],"law_id":80429,"edition_id":1,"section_id":80429,"structure_id":14577,"section_number":"13.1-989","catch_line":"Membership in corporation; loans from members","history":"Code 1950, \u00a7 13.1-147; 1960, c. 80; 1962, c. 159; 1972, c. 693; 1985, c. 522; 1996, c. 77.","full_text":"A\n\nAny financial institution is authorized to become a member of a corporation by making application to the board of directors on such form and in such manner as the board of directors may require and membership shall become effective upon acceptance of such application by the board. Membership shall be for the duration of the corporation, provided, however, that upon written notice given to the corporation two years in advance, a member may withdraw from membership at the expiration date of such notice and shall not thereafter be obligated to make any loans to the corporation.B\n\nEach member shall make loans to the corporation as and when called upon by it to do so. Such loans shall be made upon terms and conditions as shall be approved from time to time by the board of directors, subject to the following conditions:1\n\nAll loans shall be evidenced by transferable instruments of the corporation and shall bear interest at a rate of not less than one-half of one percent in excess of the rate of interest determined by the board of directors to be prevalent commercial banking prime or base rate on unsecured commercial loans as of the date of the loan.2\n\nIf expressly provided in such call, the loan may provide for a rate of interest which fluctuates with the prime or base rate from time to time and which would be subject during the life of the loan to adjustment as of each interest period commencing after the next interest payment date.3\n\nAll loan limits shall be established at the $1000 amount nearest to the amount computed in accordance with the provisions of this section.4\n\nNo loan pursuant to call under this section to a development corporation shall be made if immediately thereafter the total amount of the obligations of the corporation would exceed ten times the amount of its outstanding and unimpaired capital stock, its earned and unimpaired surplus established pursuant to § 13.1-994 and any indebtedness expressly subordinated to loans made pursuant to call under this section.5\n\nThe total amount outstanding at any one time on loans to a development corporation made by any member shall not exceed the following limit, to be determined as of the time such member becomes a member, on the basis of figures contained in the most recent year-end statement furnished by such member to state or federal supervisory authorities, as the case may be: two percent of the capital and permanent surplus of banks and trust companies; one-half of one percent of the total outstanding loans made by a savings institution, or $250,000, whichever is less; one percent of the total outstanding loans made by an industrial loan company; one percent of the capital and unassigned surplus of stock insurance companies, except fire insurance companies; one percent of the unassigned surplus of mutual insurance companies, except fire insurance companies; one-tenth of one percent of the assets of fire insurance companies.6\n\nAll loan limits shall be recomputed as of January 1 of each even-numbered year, but no member’s loan limit shall be increased as the result of such recomputation without the consent of such member.7\n\nEach call for loans made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The “adjusted loan limit” of a member shall be the amount of such member’s loan limit, reduced by the balance of outstanding loans made by such member to the corporation and the investment of such member in capital stock of the corporation at the time of such call.8\n\nA member of a corporation created under this chapter shall not be a member of more than one such corporation.","order_by":null,"text":{"0":{"id":288089,"text":"Any financial institution is authorized to become a member of a corporation by making application to the board of directors on such form and in such manner as the board of directors may require and membership shall become effective upon acceptance of such application by the board. Membership shall be for the duration of the corporation, provided, however, that upon written notice given to the corporation two years in advance, a member may withdraw from membership at the expiration date of such notice and shall not thereafter be obligated to make any loans to the corporation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":288090,"text":"Each member shall make loans to the corporation as and when called upon by it to do so. Such loans shall be made upon terms and conditions as shall be approved from time to time by the board of directors, subject to the following conditions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":288091,"text":"All loans shall be evidenced by transferable instruments of the corporation and shall bear interest at a rate of not less than one-half of one percent in excess of the rate of interest determined by the board of directors to be prevalent commercial banking prime or base rate on unsecured commercial loans as of the date of the loan.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":288092,"text":"If expressly provided in such call, the loan may provide for a rate of interest which fluctuates with the prime or base rate from time to time and which would be subject during the life of the loan to adjustment as of each interest period commencing after the next interest payment date.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":288093,"text":"All loan limits shall be established at the $1000 amount nearest to the amount computed in accordance with the provisions of this section.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":288094,"text":"No loan pursuant to call under this section to a development corporation shall be made if immediately thereafter the total amount of the obligations of the corporation would exceed ten times the amount of its outstanding and unimpaired capital stock, its earned and unimpaired surplus established pursuant to § 13.1-994 and any indebtedness expressly subordinated to loans made pursuant to call under this section.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":288095,"text":"The total amount outstanding at any one time on loans to a development corporation made by any member shall not exceed the following limit, to be determined as of the time such member becomes a member, on the basis of figures contained in the most recent year-end statement furnished by such member to state or federal supervisory authorities, as the case may be: two percent of the capital and permanent surplus of banks and trust companies; one-half of one percent of the total outstanding loans made by a savings institution, or $250,000, whichever is less; one percent of the total outstanding loans made by an industrial loan company; one percent of the capital and unassigned surplus of stock insurance companies, except fire insurance companies; one percent of the unassigned surplus of mutual insurance companies, except fire insurance companies; one-tenth of one percent of the assets of fire insurance companies.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":288096,"text":"All loan limits shall be recomputed as of January 1 of each even-numbered year, but no member’s loan limit shall be increased as the result of such recomputation without the consent of such member.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":288097,"text":"Each call for loans made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The “adjusted loan limit” of a member shall be the amount of such member’s loan limit, reduced by the balance of outstanding loans made by such member to the corporation and the investment of such member in capital stock of the corporation at the time of such call.","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"9":{"id":288098,"text":"A member of a corporation created under this chapter shall not be a member of more than one such corporation.","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7"}},"ancestry":[{"id":14577,"edition_id":1,"name":"Industrial Development Corporations","identifier":"11","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:48:44","date_modified":"2026-06-26 03:48:44","permalink":{"id":148277,"object_type":"structure","relational_id":14577,"identifier":"11","token":"13.1\/11","url":"\/13.1\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":80825,"structure_id":14577,"section_number":"13.1-981","catch_line":"How chapter cited","url":"\/13.1-981\/","token":"13.1\/11\/13.1-981","metadata":false},{"id":69245,"structure_id":14577,"section_number":"13.1-982","catch_line":"Definitions","url":"\/13.1-982\/","token":"13.1\/11\/13.1-982","metadata":false},{"id":56063,"structure_id":14577,"section_number":"13.1-983","catch_line":"Incorporation","url":"\/13.1-983\/","token":"13.1\/11\/13.1-983","metadata":false},{"id":83258,"structure_id":14577,"section_number":"13.1-984","catch_line":"Corporate name","url":"\/13.1-984\/","token":"13.1\/11\/13.1-984","metadata":false},{"id":68339,"structure_id":14577,"section_number":"13.1-985","catch_line":"Governor to approve articles of incorporation","url":"\/13.1-985\/","token":"13.1\/11\/13.1-985","metadata":false},{"id":65825,"structure_id":14577,"section_number":"13.1-986","catch_line":"How funds may be derived","url":"\/13.1-986\/","token":"13.1\/11\/13.1-986","metadata":false},{"id":60972,"structure_id":14577,"section_number":"13.1-987","catch_line":"Restrictions on 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 committee","url":"\/13.1-992\/","token":"13.1\/11\/13.1-992","metadata":false},{"id":77569,"structure_id":14577,"section_number":"13.1-993","catch_line":"Restrictions on amendments to articles of incorporation","url":"\/13.1-993\/","token":"13.1\/11\/13.1-993","metadata":false},{"id":69071,"structure_id":14577,"section_number":"13.1-994","catch_line":"Earned surplus","url":"\/13.1-994\/","token":"13.1\/11\/13.1-994","metadata":false},{"id":74233,"structure_id":14577,"section_number":"13.1-995","catch_line":"Members to have rights of shareholders","url":"\/13.1-995\/","token":"13.1\/11\/13.1-995","metadata":false},{"id":84215,"structure_id":14577,"section_number":"13.1-996","catch_line":"Corporation not authorized to receive money on deposit; deposit of funds of corporation","url":"\/13.1-996\/","token":"13.1\/11\/13.1-996","metadata":false},{"id":71494,"structure_id":14577,"section_number":"13.1-997","catch_line":"Books and records","url":"\/13.1-997\/","token":"13.1\/11\/13.1-997","metadata":false},{"id":80620,"structure_id":14577,"section_number":"13.1-998","catch_line":"Credit of Commonwealth not pledged","url":"\/13.1-998\/","token":"13.1\/11\/13.1-998","metadata":false}],"previous_section":{"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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-989\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 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 1962, chapter 159; in 1972, chapter 693; in 1985, chapter 522; in 1996, chapter 77<\/a>.<\/p>","references":[{"id":85284,"section_number":"13.1-990","catch_line":"Shares and shareholders","order_by":null,"url":"\/13.1-990\/"},{"id":72431,"section_number":"13.1-992","catch_line":"Executive committee","order_by":null,"url":"\/13.1-992\/"}],"refers_to":[{"id":69071,"section_number":"13.1-994","catch_line":"Earned surplus","order_by":null,"url":"\/13.1-994\/"}],"permalink":{"id":148311,"object_type":"law","relational_id":80429,"identifier":"13.1-989","token":"13.1\/11\/13.1-989","url":"\/13.1-989\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-989\/","token":"13.1\/11\/13.1-989","dublin_core":{"Title":"Membership in corporation; loans from members","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-989","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any financial institution is authorized to become a member of a corporation by making application to the board of directors on such form and in such manner as the board of directors may require and membership shall become effective upon acceptance of such application by the board. Membership shall be for the duration of the corporation, provided, however, that upon written notice given to the corporation two years in advance, a member may withdraw from membership at the expiration date of such notice and shall not thereafter be obligated to make any loans to the corporation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each member shall make loans to the corporation as and when called upon by it to do so. Such loans shall be made upon terms and conditions as shall be approved from time to time by the board of directors, subject to the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> All loans shall be evidenced by transferable instruments of the corporation and shall bear interest at a rate of not less than one-half of one percent in excess of the rate of interest determined by the board of directors to be prevalent commercial banking prime or base rate on unsecured commercial loans as of the date of the loan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If expressly provided in such call, the loan may provide for a rate of interest which fluctuates with the prime or base rate from time to time and which would be subject during the life of the loan to adjustment as of each interest period commencing after the next interest payment date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> All loan limits shall be established at the $1000 amount nearest to the amount computed in accordance with the provisions of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> No loan pursuant to call under this section to a development corporation shall be made if immediately thereafter the total amount of the obligations of the corporation would exceed ten times the amount of its outstanding and unimpaired capital stock, its earned and unimpaired surplus established pursuant to § 13.1-994<\/a> and any indebtedness expressly subordinated to loans made pursuant to call under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The total amount outstanding at any one time on loans to a development corporation made by any member shall not exceed the following limit, to be determined as of the time such member becomes a member, on the basis of figures contained in the most recent year-end statement furnished by such member to state or federal supervisory authorities, as the case may be: two percent of the capital and permanent surplus of banks and trust companies; one-half of one percent of the total outstanding loans made by a savings institution, or $250,000, whichever is less; one percent of the total outstanding loans made by an industrial loan company; one percent of the capital and unassigned surplus of stock insurance companies, except fire insurance companies; one percent of the unassigned surplus of mutual insurance companies, except fire insurance companies; one-tenth of one percent of the assets<\/span> of fire insurance companies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> All loan limits shall be recomputed as of January 1 of each even-numbered year, but no member’s loan limit shall be increased as the result of such recomputation without the consent of such member. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Each call for loans made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The “adjusted loan limit” of a member shall be the amount of such member’s loan limit, reduced by the balance of outstanding loans made by such member to the corporation and the investment of such member in capital stock of the corporation at the time of such call. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> A member of a corporation created under this chapter shall not be a member of more than one such corporation. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMEMBERSHIP IN CORPORATION; LOANS FROM MEMBERS (\u00a7 13.1-989)\n\nA. Any financial institution is authorized to become a member of a corporation\nby making application to the board of directors on such form and in such manner\nas the board of directors may require and membership shall become effective upon\nacceptance of such application by the board. Membership shall be for the\nduration of the corporation, provided, however, that upon written notice given\nto the corporation two years in advance, a member may withdraw from membership\nat the expiration date of such notice and shall not thereafter be obligated to\nmake any loans to the corporation.\n\nB. Each member shall make loans to the corporation as and when called upon by it\nto do so. Such loans shall be made upon terms and conditions as shall be\napproved from time to time by the board of directors, subject to the following\nconditions:\n\n 1. All loans shall be evidenced by transferable instruments of the corporation\n and shall bear interest at a rate of not less than one-half of one percent in\n excess of the rate of interest determined by the board of directors to be\n prevalent commercial banking prime or base rate on unsecured commercial loans\n as of the date of the loan.\n\n 2. If expressly provided in such call, the loan may provide for a rate of\n interest which fluctuates with the prime or base rate from time to time and\n which would be subject during the life of the loan to adjustment as of each\n interest period commencing after the next interest payment date.\n\n 3. All loan limits shall be established at the $1000 amount nearest to the\n amount computed in accordance with the provisions of this section.\n\n 4. No loan pursuant to call under this section to a development corporation\n shall be made if immediately thereafter the total amount of the obligations of\n the corporation would exceed ten times the amount of its outstanding and\n unimpaired capital stock, its earned and unimpaired surplus established\n pursuant to § 13.1-994 and any indebtedness expressly subordinated to\n loans made pursuant to call under this section.\n\n 5. The total amount outstanding at any one time on loans to a development\n corporation made by any member shall not exceed the following limit, to be\n determined as of the time such member becomes a member, on the basis of\n figures contained in the most recent year-end statement furnished by such\n member to state or federal supervisory authorities, as the case may be: two\n percent of the capital and permanent surplus of banks and trust companies;\n one-half of one percent of the total outstanding loans made by a savings\n institution, or $250,000, whichever is less; one percent of the total\n outstanding loans made by an industrial loan company; one percent of the\n capital and unassigned surplus of stock insurance companies, except fire\n insurance companies; one percent of the unassigned surplus of mutual insurance\n companies, except fire insurance companies; one-tenth of one percent of the\n assets of fire insurance companies.\n\n 6. All loan limits shall be recomputed as of January 1 of each even-numbered\n year, but no member’s loan limit shall be increased as the result of\n such recomputation without the consent of such member.\n\n 7. Each call for loans made by the corporation shall be prorated among the\n members of the corporation in substantially the same proportion that the\n adjusted loan limit of each member bears to the aggregate of the adjusted loan\n limits of all members. The “adjusted loan limit” of a member shall\n be the amount of such member’s loan limit, reduced by the balance of\n outstanding loans made by such member to the corporation and the investment of\n such member in capital stock of the corporation at the time of such call.\n\n 8. A member of a corporation created under this chapter shall not be a member\n of more than one such corporation.\n\nHISTORY: Code 1950, \u00a7 13.1-147; 1960, c. 80; 1962, c. 159; 1972, c. 693; 1985,\nc. 522; 1996, c. 77.","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}}