{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1434.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1434.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1434.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1434.html"}],"law_id":71966,"edition_id":1,"section_id":71966,"structure_id":14741,"section_number":"38.2-1434","catch_line":"Mortgage loans","history":"1983, c. 457, \u00a7 38.1-217.37; 1986, c. 562.","full_text":"Subject to the provisions of \u00a7 38.2-1437, a domestic insurer may invest in:\n\n1\n\nObligations secured by first mortgages or first deeds of trust on improved unencumbered real property located in the United States;2\n\nObligations secured by first mortgages or first deeds of trust upon leasehold estates on improved and otherwise unencumbered real property where:\n\t\t\ta. The leasehold interest lasts for a term of not less than ten years beyond the maturity of the loan as made or as extended; and\n\t\t\tb. The mortgagee is subrogated to all the rights of the lessee on foreclosure or on taking a deed in lieu of foreclosure; or3\n\nObligations secured by first mortgages or first deeds of trust on unimproved and unencumbered real property in the United States for the purpose of financing the construction of a building or other improvements on the real property subject to the mortgage or deed of trust, if:\n\t\t\ta. These obligations mature not more than sixty months from the effective date of the mortgage or deed of trust and are the unlimited and unconditional liability of the obligor;\n\t\t\tb. The obligor provides the insurer with a completion bond for the building or improvements at the time of making the loan; and\n\t\t\tc. The insurer at or prior to the making of the loan (i) enters into an agreement with another party to provide permanent financing or (ii) agrees to provide permanent financing upon completion of the building or other improvement.","order_by":null,"text":{"0":{"id":259324,"text":"Subject to the provisions of \u00a7 38.2-1437, a domestic insurer may invest in:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":259325,"text":"Obligations secured by first mortgages or first deeds of trust on improved unencumbered real property located in the United States;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":259326,"text":"Obligations secured by first mortgages or first deeds of trust upon leasehold estates on improved and otherwise unencumbered real property where:\n\t\t\ta. The leasehold interest lasts for a term of not less than ten years beyond the maturity of the loan as made or as extended; and\n\t\t\tb. The mortgagee is subrogated to all the rights of the lessee on foreclosure or on taking a deed in lieu of foreclosure; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":259327,"text":"Obligations secured by first mortgages or first deeds of trust on unimproved and unencumbered real property in the United States for the purpose of financing the construction of a building or other improvements on the real property subject to the mortgage or deed of trust, if:\n\t\t\ta. These obligations mature not more than sixty months from the effective date of the mortgage or deed of trust and are the unlimited and unconditional liability of the obligor;\n\t\t\tb. The obligor provides the insurer with a completion bond for the building or improvements at the time of making the loan; and\n\t\t\tc. The insurer at or prior to the making of the loan (i) enters into an agreement with another party to provide permanent financing or (ii) agrees to provide permanent financing upon completion of the building or other improvement.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1434\/","history_text":"<p>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 1 time. 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. That modification is as follows: in 1986, chapter 562.<\/p>","references":[{"id":81959,"section_number":"38.2-1414","catch_line":"Limits by type of investment","order_by":null,"url":"\/38.2-1414\/"},{"id":75123,"section_number":"38.2-1435","catch_line":"Second mortgages; wrap-around mortgages","order_by":null,"url":"\/38.2-1435\/"},{"id":78317,"section_number":"38.2-1436","catch_line":"Mortgage participations","order_by":null,"url":"\/38.2-1436\/"},{"id":67740,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","order_by":null,"url":"\/38.2-1437\/"},{"id":80668,"section_number":"38.2-1437.1","catch_line":"Mortgage pass-through securities","order_by":null,"url":"\/38.2-1437.1\/"},{"id":62837,"section_number":"38.2-1439","catch_line":"Chattel mortgages","order_by":null,"url":"\/38.2-1439\/"},{"id":78879,"section_number":"38.2-212","catch_line":"Certain compensation not prohibited","order_by":null,"url":"\/38.2-212\/"}],"refers_to":[{"id":67740,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","order_by":null,"url":"\/38.2-1437\/"}],"permalink":{"id":212049,"object_type":"law","relational_id":71966,"identifier":"38.2-1434","token":"38.2\/14\/2\/38.2-1434","url":"\/38.2-1434\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1434\/","token":"38.2\/14\/2\/38.2-1434","dublin_core":{"Title":"Mortgage loans","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1434","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Subject to the provisions of \u00a7&nbsp;<a class=\"law\" title=\"Limitations on mortgages\" href=\"\/38.2-1437\/\">38.2-1437<\/a>, a domestic <span class=\"dictionary\">insurer<\/span> may invest in:<\/p><\/section>\n\t\t\t\t\t\t<section id=\"1\"><p><span class=\"prefix-number\">1.<\/span> <span class=\"dictionary\">Obligations<\/span> secured by first mortgages or first deeds of trust on improved unencumbered real property located in the United <span class=\"dictionary\">States<\/span>; <a id=\"paragraph-259325\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1434\/#1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"2\"><p><span class=\"prefix-number\">2.<\/span> <span class=\"dictionary\">Obligations<\/span> secured by first mortgages or first deeds of trust upon leasehold estates on improved and otherwise unencumbered real property where:\n\t\t\ta. The leasehold interest lasts for a term of not less than ten years beyond the maturity of the loan as made or as extended; and\n\t\t\tb. The mortgagee is subrogated to all the rights of the lessee on foreclosure or on taking a deed in lieu of foreclosure; or <a id=\"paragraph-259326\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1434\/#2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"3\"><p><span class=\"prefix-number\">3.<\/span> <span class=\"dictionary\">Obligations<\/span> secured by first mortgages or first deeds of trust on unimproved and unencumbered real property in the United <span class=\"dictionary\">States<\/span> for the purpose of financing the construction of a building or other improvements on the real property subject to the mortgage or deed of trust, if:\n\t\t\ta. These <span class=\"dictionary\">obligations<\/span> mature not more than sixty months from the effective date of the mortgage or deed of trust and are the unlimited and unconditional liability of the obligor;\n\t\t\tb. The obligor provides the <span class=\"dictionary\">insurer<\/span> with a completion <span class=\"dictionary\">bond<\/span> for the building or improvements at the time of making the loan; and\n\t\t\tc. The <span class=\"dictionary\">insurer<\/span> at or prior to the making of the loan (i) enters into an agreement with another <span class=\"dictionary\">party<\/span> to provide permanent financing or (ii) agrees to provide permanent financing upon completion of the building or other improvement. <a id=\"paragraph-259327\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1434\/#3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nMORTGAGE LOANS (\u00a7 38.2-1434)\n\nSubject to the provisions of \u00a7 38.2-1437, a domestic insurer may invest in:\n\n1. Obligations secured by first mortgages or first deeds of trust on improved\nunencumbered real property located in the United States;\n\n2. Obligations secured by first mortgages or first deeds of trust upon leasehold\nestates on improved and otherwise unencumbered real property where:\n\t\t\ta. The leasehold interest lasts for a term of not less than ten years beyond\nthe maturity of the loan as made or as extended; and\n\t\t\tb. The mortgagee is subrogated to all the rights of the lessee on foreclosure\nor on taking a deed in lieu of foreclosure; or\n\n3. Obligations secured by first mortgages or first deeds of trust on unimproved\nand unencumbered real property in the United States for the purpose of financing\nthe construction of a building or other improvements on the real property\nsubject to the mortgage or deed of trust, if:\n\t\t\ta. These obligations mature not more than sixty months from the effective\ndate of the mortgage or deed of trust and are the unlimited and unconditional\nliability of the obligor;\n\t\t\tb. The obligor provides the insurer with a completion bond for the building\nor improvements at the time of making the loan; and\n\t\t\tc. The insurer at or prior to the making of the loan (i) enters into an\nagreement with another party to provide permanent financing or (ii) agrees to\nprovide permanent financing upon completion of the building or other\nimprovement.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.37; 1986, c. 562.","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}}