{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1415.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1415.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1415.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1415.html"}],"law_id":84933,"edition_id":1,"section_id":84933,"structure_id":14741,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","history":"1983, c. 457, \u00a7 38.1-217.18; 1986, c. 562; 1992, c. 588; 1998, c. 414.","full_text":"A\n\nUnited States obligations. A domestic insurer may invest in any bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States or for which the full faith and credit of the United States are pledged for the payment of principal and interest.B\n\nUnited States agencies obligations. A domestic insurer may invest in any bonds, notes, warrants and other evidence of indebtedness which are direct obligations for the payment of money, issued by an agency or instrumentality of the United States, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by an agency or instrumentality of the United States.C\n\nState government obligations. A domestic insurer may invest in direct, general obligations of any state of the United States for the payment of money, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by any state of the United States, on the following conditions:1\n\nThe state has the power to levy taxes for the prompt payment of the principal and interest of its obligations;2\n\nThe state is not in default in the payment of principal or interest on any of its direct, guaranteed or insured obligations as of the date of investment;3\n\nAn insurer shall not invest under this subsection more than five percent of its admitted assets in obligations issued or guaranteed by any one state; and4\n\nAn insurer shall not invest under this subsection more than thirty percent of its admitted assets.D\n\nLocal government obligations. A domestic insurer may invest in direct, general obligations of any political subdivision, of any state of the United States, for the payment of money, or obligations for the payment of money, to the extent guaranteed as to the payment of principal and interest, by any such political subdivision, on the following conditions:1\n\nThe obligations are payable or guaranteed from ad valorem taxes;2\n\nSuch political subdivision is not in default in the payment of principal or interest on any of its direct or guaranteed obligations;3\n\nNo investment shall be made under this subsection in obligations which are secured only by special assessments for local improvements;4\n\nAn insurer shall not invest more than five percent of its admitted assets in obligations issued or guaranteed by any one such political subdivision; and5\n\nAn insurer shall not invest more than thirty percent of its admitted assets under this subsection.E\n\nAnticipation obligations. An insurer may invest in the anticipation obligations of any political subdivision of any state, all within the United States, including but not limited to bond anticipation notes, tax anticipation notes, preliminary loan anticipation notes, revenue anticipation notes and construction anticipation notes, for the payment of money within twelve months from the issuance of the obligation, on the following conditions:1\n\nThe anticipation notes must be a direct obligation of the issuer under conditions set forth in subsection D of § 38.2-1415;2\n\nThe political subdivision is not in default in the payment of the principal or interest on any of its direct general obligations or any obligation guaranteed by such political subdivision;3\n\nThe anticipation funds shall be specifically pledged to secure the obligation;4\n\nAn insurer shall not invest more than two percent of its admitted assets in the anticipation obligations issued by any one such political subdivision; and5\n\nAn insurer shall not invest more than ten percent of its admitted assets under this subsection.F\n\nState or municipal revenue obligations. A domestic insurer may invest in obligations of any state of the United States, a political subdivision thereof, or a public instrumentality of any one or more of the foregoing, for the payment of money, on the following conditions:1\n\nThe obligations are payable from revenues or earnings of a public utility of such state, political subdivision, or public instrumentality which are specifically pledged therefor;2\n\nThe law under which the obligations are issued requires that rates for service shall be charged and collected at all times such that they will produce sufficient revenue or earnings which, together with any other revenues or moneys pledged, are sufficient to pay all operating and maintenance charges of the public utility and all principal and interest on such obligations;3\n\nNo prior or parity obligations payable from the revenues or earnings of that public utility are in default as of the date of the investment;4\n\nAn insurer shall not invest under this subsection more than two percent of its admitted assets in the revenue obligations issued in connection with any one facility;5\n\nAn insurer shall not invest under this subsection more than two percent of its admitted assets in revenue obligations payable from revenue or earning sources which are the contractual responsibility of any one single credit risk; and6\n\nAn insurer shall not invest under this subsection more than twenty-five percent of its admitted assets.G\n\nOther revenue obligations of state and local governments. A domestic insurer may invest in other state and local government revenue obligations of any state of the United States, a political subdivision thereof, or a public instrumentality of any of the foregoing, for the payment of money, on the following conditions:1\n\nThe obligations are payable from revenues or earnings, excluding revenues or earnings from public utilities, specifically pledged therefor by such state, political subdivision, or public instrumentality;2\n\nAn insurer shall not invest under this subsection more than two percent of its admitted assets in the revenue obligations issued in connection with any one facility;3\n\nNo prior or parity obligation of the same issuer payable from revenues or earnings from the same source has been in default as to principal or interest during the five years next preceding the date of such investment, but the issuer need not have been in existence for that period, and obligations acquired under this subsection may have been newly issued;4\n\nAn insurer shall not invest under this subsection more than two percent of its admitted assets in revenue obligations payable from sources which are the contractual responsibility of any one single credit risk; and5\n\nAn insurer shall not invest under this subsection more than twenty-five percent of its admitted assets.","order_by":null,"text":{"0":{"id":304301,"text":"United States obligations. A domestic insurer may invest in any bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States or for which the full faith and credit of the United States are pledged for the payment of principal and interest.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":304302,"text":"United States agencies obligations. A domestic insurer may invest in any bonds, notes, warrants and other evidence of indebtedness which are direct obligations for the payment of money, issued by an agency or instrumentality of the United States, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by an agency or instrumentality of the United States.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":304303,"text":"State government obligations. A domestic insurer may invest in direct, general obligations of any state of the United States for the payment of money, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by any state of the United States, on the following conditions:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":304304,"text":"The state has the power to levy taxes for the prompt payment of the principal and interest of its obligations;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":304305,"text":"The state is not in default in the payment of principal or interest on any of its direct, guaranteed or insured obligations as of the date of investment;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":304306,"text":"An insurer shall not invest under this subsection more than five percent of its admitted assets in obligations issued or guaranteed by any one state; and","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":304307,"text":"An insurer shall not invest under this subsection more than thirty percent of its admitted assets.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"7":{"id":304308,"text":"Local government obligations. A domestic insurer may invest in direct, general obligations of any political subdivision, of any state of the United States, for the payment of money, or obligations for the payment of money, to the extent guaranteed as to the payment of principal and interest, by any such political subdivision, on the following conditions:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"D1"},"8":{"id":304309,"text":"The obligations are payable or guaranteed from ad valorem taxes;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"9":{"id":304310,"text":"Such political subdivision is not in default in the payment of principal or interest on any of its direct or guaranteed obligations;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"10":{"id":304311,"text":"No investment shall be made under this subsection in obligations which are secured only by special assessments for local improvements;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"11":{"id":304312,"text":"An insurer shall not invest more than five percent of its admitted assets in obligations issued or guaranteed by any one such political subdivision; and","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"12":{"id":304313,"text":"An insurer shall not invest more than thirty percent of its admitted assets under this subsection.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"E"},"13":{"id":304314,"text":"Anticipation obligations. An insurer may invest in the anticipation obligations of any political subdivision of any state, all within the United States, including but not limited to bond anticipation notes, tax anticipation notes, preliminary loan anticipation notes, revenue anticipation notes and construction anticipation notes, for the payment of money within twelve months from the issuance of the obligation, on the following conditions:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D5","next_prefix":"E1"},"14":{"id":304315,"text":"The anticipation notes must be a direct obligation of the issuer under conditions set forth in subsection D of § 38.2-1415;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"15":{"id":304316,"text":"The political subdivision is not in default in the payment of the principal or interest on any of its direct general obligations or any obligation guaranteed by such political subdivision;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"16":{"id":304317,"text":"The anticipation funds shall be specifically pledged to secure the obligation;","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"17":{"id":304318,"text":"An insurer shall not invest more than two percent of its admitted assets in the anticipation obligations issued by any one such political subdivision; and","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"18":{"id":304319,"text":"An insurer shall not invest more than ten percent of its admitted assets under this subsection.","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"F"},"19":{"id":304320,"text":"State or municipal revenue obligations. A domestic insurer may invest in obligations of any state of the United States, a political subdivision thereof, or a public instrumentality of any one or more of the foregoing, for the payment of money, on the following conditions:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E5","next_prefix":"F1"},"20":{"id":304321,"text":"The obligations are payable from revenues or earnings of a public utility of such state, political subdivision, or public instrumentality which are specifically pledged therefor;","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"21":{"id":304322,"text":"The law under which the obligations are issued requires that rates for service shall be charged and collected at all times such that they will produce sufficient revenue or earnings which, together with any other revenues or moneys pledged, are sufficient to pay all operating and maintenance charges of the public utility and all principal and interest on such obligations;","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"F3"},"22":{"id":304323,"text":"No prior or parity obligations payable from the revenues or earnings of that public utility are in default as of the date of the investment;","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"F4"},"23":{"id":304324,"text":"An insurer shall not invest under this subsection more than two percent of its admitted assets in the revenue obligations issued in connection with any one facility;","type":"section","prefixes":["F","4"],"prefix":"4","entire_prefix":"F4","prefix_anchor":"F4","level":2,"prior_prefix":"F3","next_prefix":"F5"},"24":{"id":304325,"text":"An insurer shall not invest under this subsection more than two percent of its admitted assets in revenue obligations payable from revenue or earning sources which are the contractual responsibility of any one single credit risk; and","type":"section","prefixes":["F","5"],"prefix":"5","entire_prefix":"F5","prefix_anchor":"F5","level":2,"prior_prefix":"F4","next_prefix":"F6"},"25":{"id":304326,"text":"An insurer shall not invest under this subsection more than twenty-five percent of its admitted assets.","type":"section","prefixes":["F","6"],"prefix":"6","entire_prefix":"F6","prefix_anchor":"F6","level":2,"prior_prefix":"F5","next_prefix":"G"},"26":{"id":304327,"text":"Other revenue obligations of state and local governments. A domestic insurer may invest in other state and local government revenue obligations of any state of the United States, a political subdivision thereof, or a public instrumentality of any of the foregoing, for the payment of money, on the following conditions:","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F6","next_prefix":"G1"},"27":{"id":304328,"text":"The obligations are payable from revenues or earnings, excluding revenues or earnings from public utilities, specifically pledged therefor by such state, political subdivision, or public instrumentality;","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"28":{"id":304329,"text":"An insurer shall not invest under this subsection more than two percent of its admitted assets in the revenue obligations issued in connection with any one facility;","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1","next_prefix":"G3"},"29":{"id":304330,"text":"No prior or parity obligation of the same issuer payable from revenues or earnings from the same source has been in default as to principal or interest during the five years next preceding the date of such investment, but the issuer need not have been in existence for that period, and obligations acquired under this subsection may have been newly issued;","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"30":{"id":304331,"text":"An insurer shall not invest under this subsection more than two percent of its admitted assets in revenue obligations payable from sources which are the contractual responsibility of any one single credit risk; and","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"31":{"id":304332,"text":"An insurer shall not invest under this subsection more than twenty-five percent of its admitted assets.","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4"}},"ancestry":[{"id":14741,"edition_id":1,"name":"Category 1 Investments","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13282,"metadata":{},"date_created":"2026-06-26 03:49:39","date_modified":"2026-06-26 03:49:39","permalink":{"id":211947,"object_type":"structure","relational_id":14741,"identifier":"2","token":"38.2\/14\/2","url":"\/38.2\/14\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13282,"edition_id":1,"name":"Investments","identifier":"14","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:34","date_modified":"2026-06-26 03:44:34","permalink":{"id":211887,"object_type":"structure","relational_id":13282,"identifier":"14","token":"38.2\/14","url":"\/38.2\/14\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78849,"structure_id":14741,"section_number":"38.2-1412","catch_line":"Scope of article","url":"\/38.2-1412\/","token":"38.2\/14\/2\/38.2-1412","metadata":false},{"id":80227,"structure_id":14741,"section_number":"38.2-1413","catch_line":"Investment limits for one obligor, one issue or one loan","url":"\/38.2-1413\/","token":"38.2\/14\/2\/38.2-1413","metadata":false},{"id":81959,"structure_id":14741,"section_number":"38.2-1414","catch_line":"Limits by type of investment","url":"\/38.2-1414\/","token":"38.2\/14\/2\/38.2-1414","metadata":false},{"id":84933,"structure_id":14741,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","url":"\/38.2-1415\/","token":"38.2\/14\/2\/38.2-1415","metadata":false},{"id":57477,"structure_id":14741,"section_number":"38.2-1416","catch_line":"Canadian governmental obligations","url":"\/38.2-1416\/","token":"38.2\/14\/2\/38.2-1416","metadata":false},{"id":73318,"structure_id":14741,"section_number":"38.2-1417","catch_line":"Canadian corporate obligations","url":"\/38.2-1417\/","token":"38.2\/14\/2\/38.2-1417","metadata":false},{"id":82385,"structure_id":14741,"section_number":"38.2-1418","catch_line":"Obligations of certain international agencies","url":"\/38.2-1418\/","token":"38.2\/14\/2\/38.2-1418","metadata":false},{"id":82955,"structure_id":14741,"section_number":"38.2-1419","catch_line":"Railroad terminal and other securities","url":"\/38.2-1419\/","token":"38.2\/14\/2\/38.2-1419","metadata":false},{"id":87150,"structure_id":14741,"section_number":"38.2-1420","catch_line":"Transportation equipment trust certificates","url":"\/38.2-1420\/","token":"38.2\/14\/2\/38.2-1420","metadata":false},{"id":59466,"structure_id":14741,"section_number":"38.2-1421","catch_line":"Business entity obligations","url":"\/38.2-1421\/","token":"38.2\/14\/2\/38.2-1421","metadata":false},{"id":57257,"structure_id":14741,"section_number":"38.2-1422","catch_line":"Obligations secured by certain leases","url":"\/38.2-1422\/","token":"38.2\/14\/2\/38.2-1422","metadata":false},{"id":56462,"structure_id":14741,"section_number":"38.2-1423","catch_line":"Preferred stocks","url":"\/38.2-1423\/","token":"38.2\/14\/2\/38.2-1423","metadata":false},{"id":75394,"structure_id":14741,"section_number":"38.2-1424","catch_line":"Guaranteed stocks","url":"\/38.2-1424\/","token":"38.2\/14\/2\/38.2-1424","metadata":false},{"id":79550,"structure_id":14741,"section_number":"38.2-1425","catch_line":"Common stock of banks or trust companies","url":"\/38.2-1425\/","token":"38.2\/14\/2\/38.2-1425","metadata":false},{"id":77680,"structure_id":14741,"section_number":"38.2-1426","catch_line":"Application of earnings tests","url":"\/38.2-1426\/","token":"38.2\/14\/2\/38.2-1426","metadata":false},{"id":69831,"structure_id":14741,"section_number":"38.2-1427","catch_line":"Common stock; covered call options","url":"\/38.2-1427\/","token":"38.2\/14\/2\/38.2-1427","metadata":false},{"id":83916,"structure_id":14741,"section_number":"38.2-1427.1","catch_line":"Limited partnerships","url":"\/38.2-1427.1\/","token":"38.2\/14\/2\/38.2-1427.1","metadata":false},{"id":86379,"structure_id":14741,"section_number":"38.2-1427.2","catch_line":"Investment company shares and units of beneficial interest","url":"\/38.2-1427.2\/","token":"38.2\/14\/2\/38.2-1427.2","metadata":false},{"id":74587,"structure_id":14741,"section_number":"38.2-1427.3","catch_line":"Investment authority; subsidiary corporations","url":"\/38.2-1427.3\/","token":"38.2\/14\/2\/38.2-1427.3","metadata":false},{"id":69711,"structure_id":14741,"section_number":"38.2-1428","catch_line":"Derivative instruments","url":"\/38.2-1428\/","token":"38.2\/14\/2\/38.2-1428","metadata":false},{"id":80990,"structure_id":14741,"section_number":"38.2-1429","catch_line":"Lending of securities","url":"\/38.2-1429\/","token":"38.2\/14\/2\/38.2-1429","metadata":false},{"id":86617,"structure_id":14741,"section_number":"38.2-1430","catch_line":"Collateral loans","url":"\/38.2-1430\/","token":"38.2\/14\/2\/38.2-1430","metadata":false},{"id":69205,"structure_id":14741,"section_number":"38.2-1431","catch_line":"Policy loans","url":"\/38.2-1431\/","token":"38.2\/14\/2\/38.2-1431","metadata":false},{"id":74795,"structure_id":14741,"section_number":"38.2-1432","catch_line":"Savings, certificates, etc","url":"\/38.2-1432\/","token":"38.2\/14\/2\/38.2-1432","metadata":false},{"id":79072,"structure_id":14741,"section_number":"38.2-1433","catch_line":"Foreign securities","url":"\/38.2-1433\/","token":"38.2\/14\/2\/38.2-1433","metadata":false},{"id":71966,"structure_id":14741,"section_number":"38.2-1434","catch_line":"Mortgage loans","url":"\/38.2-1434\/","token":"38.2\/14\/2\/38.2-1434","metadata":false},{"id":75123,"structure_id":14741,"section_number":"38.2-1435","catch_line":"Second mortgages; wrap-around mortgages","url":"\/38.2-1435\/","token":"38.2\/14\/2\/38.2-1435","metadata":false},{"id":78317,"structure_id":14741,"section_number":"38.2-1436","catch_line":"Mortgage participations","url":"\/38.2-1436\/","token":"38.2\/14\/2\/38.2-1436","metadata":false},{"id":67740,"structure_id":14741,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","url":"\/38.2-1437\/","token":"38.2\/14\/2\/38.2-1437","metadata":false},{"id":80668,"structure_id":14741,"section_number":"38.2-1437.1","catch_line":"Mortgage pass-through securities","url":"\/38.2-1437.1\/","token":"38.2\/14\/2\/38.2-1437.1","metadata":false},{"id":64298,"structure_id":14741,"section_number":"38.2-1438","catch_line":"Renewals and extensions when value of property decreases","url":"\/38.2-1438\/","token":"38.2\/14\/2\/38.2-1438","metadata":false},{"id":62837,"structure_id":14741,"section_number":"38.2-1439","catch_line":"Chattel mortgages","url":"\/38.2-1439\/","token":"38.2\/14\/2\/38.2-1439","metadata":false},{"id":65110,"structure_id":14741,"section_number":"38.2-1440","catch_line":"Investment in personal property","url":"\/38.2-1440\/","token":"38.2\/14\/2\/38.2-1440","metadata":false},{"id":74841,"structure_id":14741,"section_number":"38.2-1441","catch_line":"Real estate","url":"\/38.2-1441\/","token":"38.2\/14\/2\/38.2-1441","metadata":false},{"id":58210,"structure_id":14741,"section_number":"38.2-1442","catch_line":"Guaranty association obligations","url":"\/38.2-1442\/","token":"38.2\/14\/2\/38.2-1442","metadata":false}],"previous_section":{"id":81959,"structure_id":14741,"section_number":"38.2-1414","catch_line":"Limits by type of investment","url":"\/38.2-1414\/","token":"38.2\/14\/2\/38.2-1414","metadata":false},"next_section":{"id":57477,"structure_id":14741,"section_number":"38.2-1416","catch_line":"Canadian governmental obligations","url":"\/38.2-1416\/","token":"38.2\/14\/2\/38.2-1416","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1415\/","history_text":"

This law was first created in 1983. The record of its establishment is cataloged in chapter 457 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1983 \u201cActs\u201d aren\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 1986, chapter 562; in 1992, chapter 588; in 1998, chapter 414<\/a>.<\/p>","references":[{"id":80503,"section_number":"38.2-1405","catch_line":"Dates of determination","order_by":null,"url":"\/38.2-1405\/"},{"id":80227,"section_number":"38.2-1413","catch_line":"Investment limits for one obligor, one issue or one loan","order_by":null,"url":"\/38.2-1413\/"},{"id":84933,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","order_by":null,"url":"\/38.2-1415\/"},{"id":57257,"section_number":"38.2-1422","catch_line":"Obligations secured by certain leases","order_by":null,"url":"\/38.2-1422\/"},{"id":80990,"section_number":"38.2-1429","catch_line":"Lending of securities","order_by":null,"url":"\/38.2-1429\/"},{"id":54001,"section_number":"38.2-1621","catch_line":"Investment of safety fund","order_by":null,"url":"\/38.2-1621\/"},{"id":84019,"section_number":"38.2-1719","catch_line":"Investment of safety fund","order_by":null,"url":"\/38.2-1719\/"}],"refers_to":[{"id":84933,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","order_by":null,"url":"\/38.2-1415\/"}],"permalink":{"id":211961,"object_type":"law","relational_id":84933,"identifier":"38.2-1415","token":"38.2\/14\/2\/38.2-1415","url":"\/38.2-1415\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1415\/","token":"38.2\/14\/2\/38.2-1415","dublin_core":{"Title":"Obligations of domestic governmental entities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1415","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> United States<\/span> obligations<\/span>. A domestic insurer<\/span> may invest in any bonds<\/span>, notes, warrants<\/span>, and other evidences<\/span> of indebtedness which are direct obligations<\/span> of the United States<\/span> or for which the full faith and credit of the United States<\/span> are pledged for the payment of principal and interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> United States<\/span> agencies obligations<\/span>. A domestic insurer<\/span> may invest in any bonds<\/span>, notes, warrants<\/span> and other evidence<\/span> of indebtedness which are direct obligations<\/span> for the payment of money, issued by an agency or instrumentality of the United States<\/span>, or obligations<\/span> for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by an agency or instrumentality of the United States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> State<\/span> government obligations<\/span>. A domestic insurer<\/span> may invest in direct, general obligations<\/span> of any state<\/span> of the United States<\/span> for the payment of money, or obligations<\/span> for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by any state<\/span> of the United States<\/span>, on the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The state<\/span> has the power to levy<\/span> taxes for the prompt payment of the principal and interest of its obligations<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The state<\/span> is not in default<\/span> in the payment of principal or interest on any of its direct, guaranteed or insured obligations<\/span> as of the date of investment<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> shall not invest under this subsection more than five percent of its admitted assets<\/span> in obligations<\/span> issued or guaranteed by any one state<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest under this subsection more than thirty percent of its admitted assets<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Local government obligations<\/span>. A domestic insurer<\/span> may invest in direct, general obligations<\/span> of any political subdivision, of any state<\/span> of the United States<\/span>, for the payment of money, or obligations<\/span> for the payment of money, to the extent guaranteed as to the payment of principal and interest, by any such political subdivision, on the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The obligations<\/span> are payable or guaranteed from ad valorem taxes; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such political subdivision is not in default<\/span> in the payment of principal or interest on any of its direct or guaranteed obligations<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No investment shall be made under this subsection in obligations<\/span> which are secured only by special assessments for local improvements; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest more than five percent of its admitted assets<\/span> in obligations<\/span> issued or guaranteed by any one such political subdivision; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer<\/span> shall not invest more than thirty percent of its admitted assets<\/span> under this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Anticipation obligations<\/span>. An insurer<\/span> may invest in the anticipation obligations<\/span> of any political subdivision of any state<\/span>, all within the United States<\/span>, including but not limited to bond<\/span> anticipation notes, tax anticipation notes, preliminary loan anticipation notes, revenue anticipation notes and construction anticipation notes, for the payment of money within twelve months from the issuance of the obligation<\/span>, on the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The anticipation notes must be a direct obligation<\/span> of the issuer under conditions set forth in subsection D of § 38.2-1415<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The political subdivision is not in default<\/span> in the payment of the principal or interest on any of its direct general obligations<\/span> or any obligation<\/span> guaranteed by such political subdivision; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The anticipation funds shall be specifically pledged to secure the obligation<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest more than two percent of its admitted assets<\/span> in the anticipation obligations<\/span> issued by any one such political subdivision; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer<\/span> shall not invest more than ten percent of its admitted assets<\/span> under this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> State<\/span> or municipal revenue obligations<\/span>. A domestic insurer<\/span> may invest in obligations<\/span> of any state<\/span> of the United States<\/span>, a political subdivision thereof, or a public instrumentality of any one or more of the foregoing, for the payment of money, on the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The obligations<\/span> are payable from revenues or earnings of a public utility of such state<\/span>, political subdivision, or public instrumentality which are specifically pledged therefor; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The law<\/span> under which the obligations<\/span> are issued requires that rates<\/span><\/span> for service shall be charged and collected at all times such that they will produce sufficient revenue or earnings which, together with any other revenues or moneys pledged, are sufficient to pay all operating and maintenance charges of the public utility and all principal and interest on such obligations<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No prior or parity obligations<\/span> payable from the revenues or earnings of that public utility are in default<\/span> as of the date of the investment; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest under this subsection more than two percent of its admitted assets<\/span> in the revenue obligations<\/span> issued in connection with any one facility; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer<\/span> shall not invest under this subsection more than two percent of its admitted assets<\/span> in revenue obligations<\/span> payable from revenue or earning sources which are the contractual responsibility of any one single credit risk; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> An insurer<\/span> shall not invest under this subsection more than twenty-five percent of its admitted assets<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Other revenue obligations<\/span> of state<\/span> and local governments. A domestic insurer<\/span> may invest in other state<\/span> and local government revenue obligations<\/span> of any state<\/span> of the United States<\/span>, a political subdivision thereof, or a public instrumentality of any of the foregoing, for the payment of money, on the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The obligations<\/span> are payable from revenues or earnings, excluding revenues or earnings from public utilities, specifically pledged therefor by such state<\/span>, political subdivision, or public instrumentality; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> An insurer<\/span> shall not invest under this subsection more than two percent of its admitted assets<\/span> in the revenue obligations<\/span> issued in connection with any one facility; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> No prior or parity obligation<\/span> of the same issuer payable from revenues or earnings from the same source has been in default<\/span> as to principal or interest during the five years next preceding the date of such investment, but the issuer need not have been in existence for that period, and obligations<\/span> acquired under this subsection may have been newly issued; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An insurer<\/span> shall not invest under this subsection more than two percent of its admitted assets<\/span> in revenue obligations<\/span> payable from sources which are the contractual responsibility of any one single credit risk; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer<\/span> shall not invest under this subsection more than twenty-five percent of its admitted assets<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOBLIGATIONS OF DOMESTIC GOVERNMENTAL ENTITIES (\u00a7 38.2-1415)\n\nA. United States obligations. A domestic insurer may invest in any bonds, notes,\nwarrants, and other evidences of indebtedness which are direct obligations of\nthe United States or for which the full faith and credit of the United States\nare pledged for the payment of principal and interest.\n\nB. United States agencies obligations. A domestic insurer may invest in any\nbonds, notes, warrants and other evidence of indebtedness which are direct\nobligations for the payment of money, issued by an agency or instrumentality of\nthe United States, or obligations for the payment of money to the extent\nguaranteed or insured as to the payment of principal and interest by an agency\nor instrumentality of the United States.\n\nC. State government obligations. A domestic insurer may invest in direct,\ngeneral obligations of any state of the United States for the payment of money,\nor obligations for the payment of money to the extent guaranteed or insured as\nto the payment of principal and interest by any state of the United States, on\nthe following conditions:\n\n 1. The state has the power to levy taxes for the prompt payment of the\n principal and interest of its obligations;\n\n 2. The state is not in default in the payment of principal or interest on any\n of its direct, guaranteed or insured obligations as of the date of investment;\n\n 3. An insurer shall not invest under this subsection more than five percent of\n its admitted assets in obligations issued or guaranteed by any one state; and\n\n 4. An insurer shall not invest under this subsection more than thirty percent\n of its admitted assets.\n\nD. Local government obligations. A domestic insurer may invest in direct,\ngeneral obligations of any political subdivision, of any state of the United\nStates, for the payment of money, or obligations for the payment of money, to\nthe extent guaranteed as to the payment of principal and interest, by any such\npolitical subdivision, on the following conditions:\n\n 1. The obligations are payable or guaranteed from ad valorem taxes;\n\n 2. Such political subdivision is not in default in the payment of principal or\n interest on any of its direct or guaranteed obligations;\n\n 3. No investment shall be made under this subsection in obligations which are\n secured only by special assessments for local improvements;\n\n 4. An insurer shall not invest more than five percent of its admitted assets\n in obligations issued or guaranteed by any one such political subdivision; and\n\n 5. An insurer shall not invest more than thirty percent of its admitted assets\n under this subsection.\n\nE. Anticipation obligations. An insurer may invest in the anticipation\nobligations of any political subdivision of any state, all within the United\nStates, including but not limited to bond anticipation notes, tax anticipation\nnotes, preliminary loan anticipation notes, revenue anticipation notes and\nconstruction anticipation notes, for the payment of money within twelve months\nfrom the issuance of the obligation, on the following conditions:\n\n 1. The anticipation notes must be a direct obligation of the issuer under\n conditions set forth in subsection D of § 38.2-1415;\n\n 2. The political subdivision is not in default in the payment of the principal\n or interest on any of its direct general obligations or any obligation\n guaranteed by such political subdivision;\n\n 3. The anticipation funds shall be specifically pledged to secure the\n obligation;\n\n 4. An insurer shall not invest more than two percent of its admitted assets in\n the anticipation obligations issued by any one such political subdivision; and\n\n 5. An insurer shall not invest more than ten percent of its admitted assets\n under this subsection.\n\nF. State or municipal revenue obligations. A domestic insurer may invest in\nobligations of any state of the United States, a political subdivision thereof,\nor a public instrumentality of any one or more of the foregoing, for the payment\nof money, on the following conditions:\n\n 1. The obligations are payable from revenues or earnings of a public utility\n of such state, political subdivision, or public instrumentality which are\n specifically pledged therefor;\n\n 2. The law under which the obligations are issued requires that rates for\n service shall be charged and collected at all times such that they will\n produce sufficient revenue or earnings which, together with any other revenues\n or moneys pledged, are sufficient to pay all operating and maintenance charges\n of the public utility and all principal and interest on such obligations;\n\n 3. No prior or parity obligations payable from the revenues or earnings of\n that public utility are in default as of the date of the investment;\n\n 4. An insurer shall not invest under this subsection more than two percent of\n its admitted assets in the revenue obligations issued in connection with any\n one facility;\n\n 5. An insurer shall not invest under this subsection more than two percent of\n its admitted assets in revenue obligations payable from revenue or earning\n sources which are the contractual responsibility of any one single credit\n risk; and\n\n 6. An insurer shall not invest under this subsection more than twenty-five\n percent of its admitted assets.\n\nG. Other revenue obligations of state and local governments. A domestic insurer\nmay invest in other state and local government revenue obligations of any state\nof the United States, a political subdivision thereof, or a public\ninstrumentality of any of the foregoing, for the payment of money, on the\nfollowing conditions:\n\n 1. The obligations are payable from revenues or earnings, excluding revenues\n or earnings from public utilities, specifically pledged therefor by such\n state, political subdivision, or public instrumentality;\n\n 2. An insurer shall not invest under this subsection more than two percent of\n its admitted assets in the revenue obligations issued in connection with any\n one facility;\n\n 3. No prior or parity obligation of the same issuer payable from revenues or\n earnings from the same source has been in default as to principal or interest\n during the five years next preceding the date of such investment, but the\n issuer need not have been in existence for that period, and obligations\n acquired under this subsection may have been newly issued;\n\n 4. An insurer shall not invest under this subsection more than two percent of\n its admitted assets in revenue obligations payable from sources which are the\n contractual responsibility of any one single credit risk; and\n\n 5. An insurer shall not invest under this subsection more than twenty-five\n percent of its admitted assets.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.18; 1986, c. 562; 1992, c. 588; 1998, c. 414.","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}}