{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1437.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1437.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1437.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1437.html"}],"law_id":67740,"edition_id":1,"section_id":67740,"structure_id":14741,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","history":"1983, c. 457, \u00a7 38.1-217.40; 1986, c. 562; 1992, c. 588.","full_text":"A\n\nThe amount of any loan secured by a mortgage or deed of trust referred to in \u00a7\u00a7 38.2-1434 through 38.2-1436 shall not exceed the following percentages of the fair market value of the real estate:1\n\nSeventy-five percent for a leasehold loan made pursuant to subdivision 2 of § 38.2-1434;2\n\nNinety percent for a loan made to an employee of the insurer, other than a director or trustee thereof, whether such loan be made in connection with the initial employment of the employee or in connection with the transfer of the place of employment of the employee; or3\n\nEighty percent for all other loans.\n\t\t\t\tHowever, the percentage limits specified in this subsection may be exceeded if the excess is (i) insured or guaranteed or is to be insured or guaranteed by the United States, any state or any agency of either or (ii) insured by an insurer licensed to insure mortgage guaranty risks in this Commonwealth.B\n\nAny loan made pursuant to §§ 38.2-1434 through 38.2-1436 not in compliance with the requirements of subsection A of this section shall be classified as a Category 2 investment in its entirety.C\n\nThe fair market value of the real estate interest mortgaged shall be determined by a written appraisal of at least one competent real estate appraiser as of the date of the initial loan commitment, which appraiser shall not be an employee of the insurer nor an employee of any company controlled by or under common control with the insurer. If the loan commitment is revised to reflect a change in the value of the real estate, the fair market value shall be determined as of the date of that revision.D\n\nBuildings and other improvements on the mortgaged premises shall be insured against fire loss for the benefit of the mortgagee in an amount not less than the lesser of their insurable value or the unpaid principal balance of the obligation.E\n\nThe maximum term of any mortgage or deed of trust referred to in §§ 38.2-1434 through 38.2-1436 secured by real property primarily improved by a single-family residence shall not exceed thirty years.F\n\nA domestic insurer shall not invest, under §§ 38.2-1434 through 38.2-1436, more than two percent of its admitted assets, directly or indirectly, in mortgages covering any one secured location, nor more than four percent in the mortgages of any one obligor.","order_by":null,"text":{"0":{"id":245376,"text":"The amount of any loan secured by a mortgage or deed of trust referred to in \u00a7\u00a7 38.2-1434 through 38.2-1436 shall not exceed the following percentages of the fair market value of the real estate:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":245377,"text":"Seventy-five percent for a leasehold loan made pursuant to subdivision 2 of § 38.2-1434;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":245378,"text":"Ninety percent for a loan made to an employee of the insurer, other than a director or trustee thereof, whether such loan be made in connection with the initial employment of the employee or in connection with the transfer of the place of employment of the employee; or","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":245379,"text":"Eighty percent for all other loans.\n\t\t\t\tHowever, the percentage limits specified in this subsection may be exceeded if the excess is (i) insured or guaranteed or is to be insured or guaranteed by the United States, any state or any agency of either or (ii) insured by an insurer licensed to insure mortgage guaranty risks in this Commonwealth.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":245380,"text":"Any loan made pursuant to §§ 38.2-1434 through 38.2-1436 not in compliance with the requirements of subsection A of this section shall be classified as a Category 2 investment in its entirety.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":245381,"text":"The fair market value of the real estate interest mortgaged shall be determined by a written appraisal of at least one competent real estate appraiser as of the date of the initial loan commitment, which appraiser shall not be an employee of the insurer nor an employee of any company controlled by or under common control with the insurer. If the loan commitment is revised to reflect a change in the value of the real estate, the fair market value shall be determined as of the date of that revision.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"6":{"id":245382,"text":"Buildings and other improvements on the mortgaged premises shall be insured against fire loss for the benefit of the mortgagee in an amount not less than the lesser of their insurable value or the unpaid principal balance of the obligation.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"7":{"id":245383,"text":"The maximum term of any mortgage or deed of trust referred to in §§ 38.2-1434 through 38.2-1436 secured by real property primarily improved by a single-family residence shall not exceed thirty years.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"8":{"id":245384,"text":"A domestic insurer shall not invest, under §§ 38.2-1434 through 38.2-1436, more than two percent of its admitted assets, directly or indirectly, in mortgages covering any one secured location, nor more than four percent in the mortgages of any one obligor.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1437\/","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":[{"id":71966,"section_number":"38.2-1434","catch_line":"Mortgage loans","order_by":null,"url":"\/38.2-1434\/"},{"id":75123,"section_number":"38.2-1435","catch_line":"Second mortgages; wrap-around mortgages","order_by":null,"url":"\/38.2-1435\/"},{"id":80668,"section_number":"38.2-1437.1","catch_line":"Mortgage pass-through securities","order_by":null,"url":"\/38.2-1437.1\/"},{"id":64298,"section_number":"38.2-1438","catch_line":"Renewals and extensions when value of property decreases","order_by":null,"url":"\/38.2-1438\/"},{"id":78879,"section_number":"38.2-212","catch_line":"Certain compensation not prohibited","order_by":null,"url":"\/38.2-212\/"}],"refers_to":[{"id":71966,"section_number":"38.2-1434","catch_line":"Mortgage loans","order_by":null,"url":"\/38.2-1434\/"},{"id":78317,"section_number":"38.2-1436","catch_line":"Mortgage participations","order_by":null,"url":"\/38.2-1436\/"}],"permalink":{"id":212061,"object_type":"law","relational_id":67740,"identifier":"38.2-1437","token":"38.2\/14\/2\/38.2-1437","url":"\/38.2-1437\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1437\/","token":"38.2\/14\/2\/38.2-1437","dublin_core":{"Title":"Limitations on mortgages","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1437","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The amount of any loan secured by a mortgage or deed of trust referred to in \u00a7\u00a7 38.2-1434<\/a> through 38.2-1436<\/a> shall not exceed the following percentages of the fair market value<\/span> of the real estate: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Seventy-five percent for a leasehold loan made pursuant to subdivision 2 of § 38.2-1434<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Ninety percent for a loan made to an employee of the insurer<\/span>, other than a director or trustee thereof, whether such loan be made in connection with the initial employment of the employee or in connection with the transfer of the place of employment of the employee; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Eighty percent for all other loans.\n\t\t\t\tHowever, the percentage limits specified in this subsection may be exceeded if the excess is (i) insured or guaranteed or is to be insured or guaranteed by the United States<\/span>, any state<\/span> or any agency of either or (ii) insured by an insurer<\/span> licensed to insure mortgage guaranty risks in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any loan made pursuant to §§ 38.2-1434<\/a> through 38.2-1436<\/a> not in compliance with the requirements of subsection A of this section shall be classified as a Category 2 investment in its entirety. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The fair market value<\/span> of the real estate interest mortgaged shall be determined by a written appraisal of at least one competent real estate appraiser as of the date of the initial loan commitment, which appraiser shall not be an employee of the insurer<\/span> nor an employee of any company<\/span> controlled by or under common control with the insurer<\/span>. If the loan commitment is revised to reflect a change in the value of the real estate, the fair market value<\/span> shall be determined as of the date of that revision. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Buildings and other improvements on the mortgaged premises shall be insured against fire loss for the benefit of the mortgagee in an amount not less than the lesser of their insurable value or the unpaid principal balance of the obligation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The maximum term of any mortgage or deed of trust referred to in §§ 38.2-1434<\/a> through 38.2-1436<\/a> secured by real property primarily improved by a single-family residence shall not exceed thirty years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A domestic insurer<\/span> shall not invest, under §§ 38.2-1434<\/a> through 38.2-1436<\/a>, more than two percent of its admitted assets<\/span>, directly or indirectly, in mortgages covering any one secured location, nor more than four percent in the mortgages of any one obligor. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATIONS ON MORTGAGES (\u00a7 38.2-1437)\n\nA. The amount of any loan secured by a mortgage or deed of trust referred to in\n\u00a7\u00a7 38.2-1434 through 38.2-1436 shall not exceed the following percentages of\nthe fair market value of the real estate:\n\n 1. Seventy-five percent for a leasehold loan made pursuant to subdivision 2 of\n § 38.2-1434;\n\n 2. Ninety percent for a loan made to an employee of the insurer, other than a\n director or trustee thereof, whether such loan be made in connection with the\n initial employment of the employee or in connection with the transfer of the\n place of employment of the employee; or\n\n 3. Eighty percent for all other loans.\n \t\t\t\tHowever, the percentage limits specified in this subsection may be\n exceeded if the excess is (i) insured or guaranteed or is to be insured or\n guaranteed by the United States, any state or any agency of either or (ii)\n insured by an insurer licensed to insure mortgage guaranty risks in this\n Commonwealth.\n\nB. Any loan made pursuant to §§ 38.2-1434 through 38.2-1436 not in\ncompliance with the requirements of subsection A of this section shall be\nclassified as a Category 2 investment in its entirety.\n\nC. The fair market value of the real estate interest mortgaged shall be\ndetermined by a written appraisal of at least one competent real estate\nappraiser as of the date of the initial loan commitment, which appraiser shall\nnot be an employee of the insurer nor an employee of any company controlled by\nor under common control with the insurer. If the loan commitment is revised to\nreflect a change in the value of the real estate, the fair market value shall be\ndetermined as of the date of that revision.\n\nD. Buildings and other improvements on the mortgaged premises shall be insured\nagainst fire loss for the benefit of the mortgagee in an amount not less than\nthe lesser of their insurable value or the unpaid principal balance of the\nobligation.\n\nE. The maximum term of any mortgage or deed of trust referred to in §§\n38.2-1434 through 38.2-1436 secured by real property primarily improved by a\nsingle-family residence shall not exceed thirty years.\n\nF. A domestic insurer shall not invest, under §§ 38.2-1434 through\n38.2-1436, more than two percent of its admitted assets, directly or indirectly,\nin mortgages covering any one secured location, nor more than four percent in\nthe mortgages of any one obligor.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.40; 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}}