{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1429.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1429.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1429.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1429.html"}],"law_id":80990,"edition_id":1,"section_id":80990,"structure_id":14741,"section_number":"38.2-1429","catch_line":"Lending of securities","history":"1983, c. 457, \u00a7 38.1-217.32; 1986, c. 562; 1992, c. 588.","full_text":"A\n\nA domestic insurer may lend securities held by it pursuant to \u00a7\u00a7 38.2-1415 through 38.2-1427.2 if:1\n\nSimultaneously with the delivery of the securities, the insurer receives collateral from the borrower consisting of cash or consisting of securities issued, assumed or guaranteed by the United States, an agency of the United States or any state. The securities shall have a present market value of at least 102 percent of the market value of the securities loaned;2\n\nThe securities are loaned only for the purpose of making delivery of securities in the case of short sales, in the case of failure to receive securities requested for delivery or in other similar cases;3\n\nPrior to the loan, the borrower furnishes the insurer with the most recent statement of the borrower’s financial condition and a representation by the borrower that there has been no material adverse change in its financial condition since the date of that statement;4\n\nThe insurer receives a reasonable fee related to the value of the borrowed securities and to the duration of the loan;5\n\nThe loan is made pursuant to a written loan agreement; and6\n\nThe borrower is required to furnish by the close of each business day during the term of the loan a report of the market value of all collateral and the market value of all borrowed securities as of the close of trading on the previous business day. If at the close of any business day the market value of the collateral is less than 102 percent of the market value of the securities loaned, then the borrower shall deliver by the close of the next business day an additional amount of cash or securities. The market value of these additional securities, together with the market value of all previously delivered collateral, shall equal at least 102 percent of the market value of the securities loaned.B\n\nFor the purposes of this section, “market value” includes accrued interest.","order_by":null,"text":{"0":{"id":290269,"text":"A domestic insurer may lend securities held by it pursuant to \u00a7\u00a7 38.2-1415 through 38.2-1427.2 if:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":290270,"text":"Simultaneously with the delivery of the securities, the insurer receives collateral from the borrower consisting of cash or consisting of securities issued, assumed or guaranteed by the United States, an agency of the United States or any state. The securities shall have a present market value of at least 102 percent of the market value of the securities loaned;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":290271,"text":"The securities are loaned only for the purpose of making delivery of securities in the case of short sales, in the case of failure to receive securities requested for delivery or in other similar cases;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":290272,"text":"Prior to the loan, the borrower furnishes the insurer with the most recent statement of the borrower’s financial condition and a representation by the borrower that there has been no material adverse change in its financial condition since the date of that statement;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":290273,"text":"The insurer receives a reasonable fee related to the value of the borrowed securities and to the duration of the loan;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":290274,"text":"The loan is made pursuant to a written loan agreement; and","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":290275,"text":"The borrower is required to furnish by the close of each business day during the term of the loan a report of the market value of all collateral and the market value of all borrowed securities as of the close of trading on the previous business day. If at the close of any business day the market value of the collateral is less than 102 percent of the market value of the securities loaned, then the borrower shall deliver by the close of the next business day an additional amount of cash or securities. The market value of these additional securities, together with the market value of all previously delivered collateral, shall equal at least 102 percent of the market value of the securities loaned.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":290276,"text":"For the purposes of this section, “market value” includes accrued interest.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1429\/","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 2 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.<\/p>","references":false,"refers_to":[{"id":84933,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","order_by":null,"url":"\/38.2-1415\/"},{"id":86379,"section_number":"38.2-1427.2","catch_line":"Investment company shares and units of beneficial interest","order_by":null,"url":"\/38.2-1427.2\/"}],"permalink":{"id":212029,"object_type":"law","relational_id":80990,"identifier":"38.2-1429","token":"38.2\/14\/2\/38.2-1429","url":"\/38.2-1429\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1429\/","token":"38.2\/14\/2\/38.2-1429","dublin_core":{"Title":"Lending of securities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1429","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A domestic insurer<\/span> may lend securities held by it pursuant to \u00a7\u00a7 38.2-1415<\/a> through 38.2-1427.2<\/a> if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Simultaneously with the delivery of the securities, the insurer<\/span> receives collateral<\/span> from the borrower consisting of cash or consisting of securities issued, assumed or guaranteed by the United States<\/span>, an agency of the United States<\/span> or any state<\/span>. The securities shall have a present market value<\/span> of at least 102 percent of the market value<\/span> of the securities loaned; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The securities are loaned only for the purpose of making delivery of securities in the case of short sales, in the case of failure to receive securities requested for delivery or in other similar cases; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Prior to the loan, the borrower furnishes the insurer<\/span> with the most recent statement of the borrower’s financial condition and a representation by the borrower that there has been no material<\/span> adverse change in its financial condition since the date of that statement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The insurer<\/span> receives a reasonable fee related to the value of the borrowed securities and to the duration of the loan; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The loan is made pursuant to a written loan agreement; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The borrower is required to furnish by the close of each business day during the term of the loan a report of the market value<\/span> of all collateral<\/span> and the market value<\/span> of all borrowed securities as of the close of trading on the previous business day. If at the close of any business day the market value<\/span> of the collateral<\/span> is less than 102 percent of the market value<\/span> of the securities loaned, then the borrower shall deliver by the close of the next business day an additional amount of cash or securities. The market value<\/span> of these additional securities, together with the market value<\/span> of all previously delivered collateral<\/span>, shall equal at least 102 percent of the market value<\/span> of the securities loaned. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For the purposes of this section, “market value<\/span>” includes accrued interest. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLENDING OF SECURITIES (\u00a7 38.2-1429)\n\nA. A domestic insurer may lend securities held by it pursuant to \u00a7\u00a7 38.2-1415\nthrough 38.2-1427.2 if:\n\n 1. Simultaneously with the delivery of the securities, the insurer receives\n collateral from the borrower consisting of cash or consisting of securities\n issued, assumed or guaranteed by the United States, an agency of the United\n States or any state. The securities shall have a present market value of at\n least 102 percent of the market value of the securities loaned;\n\n 2. The securities are loaned only for the purpose of making delivery of\n securities in the case of short sales, in the case of failure to receive\n securities requested for delivery or in other similar cases;\n\n 3. Prior to the loan, the borrower furnishes the insurer with the most recent\n statement of the borrower’s financial condition and a representation by\n the borrower that there has been no material adverse change in its financial\n condition since the date of that statement;\n\n 4. The insurer receives a reasonable fee related to the value of the borrowed\n securities and to the duration of the loan;\n\n 5. The loan is made pursuant to a written loan agreement; and\n\n 6. The borrower is required to furnish by the close of each business day\n during the term of the loan a report of the market value of all collateral and\n the market value of all borrowed securities as of the close of trading on the\n previous business day. If at the close of any business day the market value of\n the collateral is less than 102 percent of the market value of the securities\n loaned, then the borrower shall deliver by the close of the next business day\n an additional amount of cash or securities. The market value of these\n additional securities, together with the market value of all previously\n delivered collateral, shall equal at least 102 percent of the market value of\n the securities loaned.\n\nB. For the purposes of this section, “market value” includes accrued\ninterest.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.32; 1986, c. 562; 1992, c. 588.","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}}