{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1622.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1622.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1622.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1622.html"}],"law_id":65559,"edition_id":1,"section_id":65559,"structure_id":12869,"section_number":"38.2-1622","catch_line":"Use of safety fund, repayment, etc","history":"1986, c. 562; 1998, c. 230.","full_text":"A\n\nThe purpose of the safety fund is to provide for the payment of covered claims in the event the assessment limit specified in subdivision A 3 of § 38.2-1606 is reached.B\n\nIn the event the assets in the safety fund are needed to pay covered claims, these assets shall be loaned to the respective account specified in § 38.2-1604. This loan shall be the general obligation of the Association.C\n\nAssets in the safety fund derived from borrowed moneys obtained under the provisions of subdivision B 7 of § 38.2-1606 shall be lent to an account at the rate of interest the Association is paying the lender providing such moneys. Interest on any other loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate will be updated quarterly in order to conform with the market rates of interest.D\n\nLoans shall be repaid by levying assessments pursuant to subdivision A 3 of § 38.2-1606 against the members for the account on whose behalf the loan was negotiated. Unless otherwise approved by the Commission, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subdivision A 3 of § 38.2-1606.E\n\nSubject to the approval of the Commission, assets in the safety fund may be loaned to any account specified in § 38.2-1604 even though the maximum assessment in subdivision A 3 of § 38.2-1606 has not been levied if the directors of the Association determine that this action will minimize the cost to the Association in paying covered claims.F\n\nExcess assets in the safety fund set forth in subsection D of § 38.2-1620 may be used to pay the Association’s covered claims without the members incurring a liability to repay the safety fund.","order_by":null,"text":{"0":{"id":238315,"text":"The purpose of the safety fund is to provide for the payment of covered claims in the event the assessment limit specified in subdivision A 3 of § 38.2-1606 is reached.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":238316,"text":"In the event the assets in the safety fund are needed to pay covered claims, these assets shall be loaned to the respective account specified in § 38.2-1604. This loan shall be the general obligation of the Association.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":238317,"text":"Assets in the safety fund derived from borrowed moneys obtained under the provisions of subdivision B 7 of § 38.2-1606 shall be lent to an account at the rate of interest the Association is paying the lender providing such moneys. Interest on any other loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate will be updated quarterly in order to conform with the market rates of interest.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":238318,"text":"Loans shall be repaid by levying assessments pursuant to subdivision A 3 of § 38.2-1606 against the members for the account on whose behalf the loan was negotiated. Unless otherwise approved by the Commission, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subdivision A 3 of § 38.2-1606.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":238319,"text":"Subject to the approval of the Commission, assets in the safety fund may be loaned to any account specified in § 38.2-1604 even though the maximum assessment in subdivision A 3 of § 38.2-1606 has not been levied if the directors of the Association determine that this action will minimize the cost to the Association in paying covered claims.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":238320,"text":"Excess assets in the safety fund set forth in subsection D of § 38.2-1620 may be used to pay the Association’s covered claims without the members incurring a liability to repay the safety fund.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":12869,"edition_id":1,"name":"Additional Funds Paid to Association","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":12868,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":212291,"object_type":"structure","relational_id":12869,"identifier":"2","token":"38.2\/16\/2","url":"\/38.2\/16\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12868,"edition_id":1,"name":"Virginia Property and Casualty Insurance Guaranty Association","identifier":"16","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:43:57","date_modified":"2026-06-26 03:43:57","permalink":{"id":212211,"object_type":"structure","relational_id":12868,"identifier":"16","token":"38.2\/16","url":"\/38.2\/16\/","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":55492,"structure_id":12869,"section_number":"38.2-1618","catch_line":"Purpose and applicability of article","url":"\/38.2-1618\/","token":"38.2\/16\/2\/38.2-1618","metadata":false},{"id":60135,"structure_id":12869,"section_number":"38.2-1619","catch_line":"Safety fund","url":"\/38.2-1619\/","token":"38.2\/16\/2\/38.2-1619","metadata":false},{"id":54201,"structure_id":12869,"section_number":"38.2-1620","catch_line":"Financing the safety fund, maximum amount, distribution of excess","url":"\/38.2-1620\/","token":"38.2\/16\/2\/38.2-1620","metadata":false},{"id":54001,"structure_id":12869,"section_number":"38.2-1621","catch_line":"Investment of safety fund","url":"\/38.2-1621\/","token":"38.2\/16\/2\/38.2-1621","metadata":false},{"id":65559,"structure_id":12869,"section_number":"38.2-1622","catch_line":"Use of safety fund, repayment, etc","url":"\/38.2-1622\/","token":"38.2\/16\/2\/38.2-1622","metadata":false},{"id":81708,"structure_id":12869,"section_number":"38.2-1623","catch_line":"Association as a fiduciary","url":"\/38.2-1623\/","token":"38.2\/16\/2\/38.2-1623","metadata":false}],"previous_section":{"id":54001,"structure_id":12869,"section_number":"38.2-1621","catch_line":"Investment of safety fund","url":"\/38.2-1621\/","token":"38.2\/16\/2\/38.2-1621","metadata":false},"next_section":{"id":81708,"structure_id":12869,"section_number":"38.2-1623","catch_line":"Association as a fiduciary","url":"\/38.2-1623\/","token":"38.2\/16\/2\/38.2-1623","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1622\/","history_text":"

This law was first created in 1986. The record of its establishment is cataloged in chapter 562 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 1986 \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 1998, chapter 230<\/a>.<\/p>","references":[{"id":72860,"section_number":"38.2-1606","catch_line":"Duties and powers of Association","order_by":null,"url":"\/38.2-1606\/"}],"refers_to":[{"id":86917,"section_number":"38.2-1604","catch_line":"Association created; members; divided into three accounts","order_by":null,"url":"\/38.2-1604\/"},{"id":72860,"section_number":"38.2-1606","catch_line":"Duties and powers of Association","order_by":null,"url":"\/38.2-1606\/"},{"id":54201,"section_number":"38.2-1620","catch_line":"Financing the safety fund, maximum amount, distribution of excess","order_by":null,"url":"\/38.2-1620\/"}],"permalink":{"id":212309,"object_type":"law","relational_id":65559,"identifier":"38.2-1622","token":"38.2\/16\/2\/38.2-1622","url":"\/38.2-1622\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1622\/","token":"38.2\/16\/2\/38.2-1622","dublin_core":{"Title":"Use of safety fund, repayment, etc","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1622","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The purpose of the safety fund is to provide for the payment of covered claims<\/span> in the event the assessment limit specified in subdivision A 3 of § 38.2-1606<\/a> is reached. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the event the assets<\/span> in the safety fund are needed to pay covered claims<\/span>, these assets<\/span> shall be loaned to the respective account<\/span> specified in § 38.2-1604<\/a>. This loan shall be the general obligation of the Association<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Assets<\/span> in the safety fund derived from borrowed moneys obtained under the provisions of subdivision B 7 of § 38.2-1606<\/a> shall be lent to an account<\/span> at the rate<\/span> of interest the Association<\/span> is paying the lender providing such moneys. Interest on any other loan shall be compounded quarterly and be based upon the average ninety-day treasury bill rate<\/span> for the most recently completed calendar quarter as published in the Federal Reserve Bulletin. This rate<\/span> will be updated quarterly in order<\/span> to conform with the market rates<\/span><\/span> of interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Loans shall be repaid by levying assessments pursuant to subdivision A 3 of § 38.2-1606<\/a> against the members for the account<\/span> on whose behalf the loan was negotiated. Unless otherwise approved by the Commission<\/span>, the loan shall be repaid within six months of its issuance. This assessment in conjunction with any other assessments levied, shall not exceed the limit specified in subdivision A 3 of § 38.2-1606<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Subject to the approval of the Commission<\/span>, assets<\/span> in the safety fund may be loaned to any account<\/span> specified in § 38.2-1604<\/a> even though the maximum assessment in subdivision A 3 of § 38.2-1606<\/a> has not been levied if the directors of the Association<\/span> determine that this action will minimize the cost to the Association<\/span> in paying covered claims<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Excess assets<\/span> in the safety fund set forth in subsection D of § 38.2-1620<\/a> may be used to pay the Association<\/span>’s covered claims<\/span> without the members incurring a liability to repay the safety fund. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUSE OF SAFETY FUND, REPAYMENT, ETC (\u00a7 38.2-1622)\n\nA. The purpose of the safety fund is to provide for the payment of covered\nclaims in the event the assessment limit specified in subdivision A 3 of §\n38.2-1606 is reached.\n\nB. In the event the assets in the safety fund are needed to pay covered claims,\nthese assets shall be loaned to the respective account specified in §\n38.2-1604. This loan shall be the general obligation of the Association.\n\nC. Assets in the safety fund derived from borrowed moneys obtained under the\nprovisions of subdivision B 7 of § 38.2-1606 shall be lent to an account at\nthe rate of interest the Association is paying the lender providing such moneys.\nInterest on any other loan shall be compounded quarterly and be based upon the\naverage ninety-day treasury bill rate for the most recently completed calendar\nquarter as published in the Federal Reserve Bulletin. This rate will be updated\nquarterly in order to conform with the market rates of interest.\n\nD. Loans shall be repaid by levying assessments pursuant to subdivision A 3 of\n§ 38.2-1606 against the members for the account on whose behalf the loan\nwas negotiated. Unless otherwise approved by the Commission, the loan shall be\nrepaid within six months of its issuance. This assessment in conjunction with\nany other assessments levied, shall not exceed the limit specified in\nsubdivision A 3 of § 38.2-1606.\n\nE. Subject to the approval of the Commission, assets in the safety fund may be\nloaned to any account specified in § 38.2-1604 even though the maximum\nassessment in subdivision A 3 of § 38.2-1606 has not been levied if the\ndirectors of the Association determine that this action will minimize the cost\nto the Association in paying covered claims.\n\nF. Excess assets in the safety fund set forth in subsection D of §\n38.2-1620 may be used to pay the Association’s covered claims without the\nmembers incurring a liability to repay the safety fund.\n\nHISTORY: 1986, c. 562; 1998, c. 230.","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}}