{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1128.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1128.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1128.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1128.html"}],"law_id":70597,"edition_id":1,"section_id":70597,"structure_id":14426,"section_number":"6.2-1128","catch_line":"Loans to executive officers or directors","history":"1982, c. 103, \u00a7 6.1-195.40:1; 1985, c. 425, \u00a7 6.1-194.21; 1995, c. 83; 1996, c. 13; 2010, c. 794.","full_text":"A\n\nAs used in this section, “executive officer” means an officer of a savings institution who participates or has authority to participate in the major policy-making functions of the savings institution.B\n\nNo executive officer or director of any savings institution shall borrow any amount more than $25,000 from the institution until such loan has been approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans.C\n\nThe following loans or lines of credit shall not be made by an institution unless specifically approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans:1\n\nAny loan in an amount of $25,000 or more made to any executive officer or director of an institution or any entity that the Commission determines is controlled by one or more executive officers or directors;2\n\nAny loan made to the persons or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer, director, or controlled entity is $100,000 or more;3\n\nAny line of credit for $25,000 or more made to the persons or entities described in subdivision 1; or4\n\nAny line of credit made to the persons or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer, director, or controlled entity is $100,000 or more.\n\t\t\t\tIf approved by the committee described in clause (ii), the approval shall be specifically reported to the board of directors at its next regular meeting.D\n\nNo extension, renewal, or renegotiation of any loan or line of credit in excess of the amounts described in subsection C shall be made to any of those individuals or entities or their interests unless it is approved by a majority of the board of directors or by the committee of officers and directors appointed by the board. If approved by the committee, such approval shall be specifically reported to the board of directors at its next regular meeting.E\n\nThe prohibitions set forth in subsections C and D shall not be construed to require approval by the board of directors for advances under previously authorized lines of credit.F\n\nThe aggregate amount of a savings institution’s loans to its executive officers or directors or their interests shall not be excessive. The Commission may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by savings institutions to those individuals or entities.","order_by":null,"text":{"0":{"id":254708,"text":"As used in this section, “executive officer” means an officer of a savings institution who participates or has authority to participate in the major policy-making functions of the savings institution.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":254709,"text":"No executive officer or director of any savings institution shall borrow any amount more than $25,000 from the institution until such loan has been approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":254710,"text":"The following loans or lines of credit shall not be made by an institution unless specifically approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":254711,"text":"Any loan in an amount of $25,000 or more made to any executive officer or director of an institution or any entity that the Commission determines is controlled by one or more executive officers or directors;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":254712,"text":"Any loan made to the persons or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer, director, or controlled entity is $100,000 or more;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":254713,"text":"Any line of credit for $25,000 or more made to the persons or entities described in subdivision 1; or","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"6":{"id":254714,"text":"Any line of credit made to the persons or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer, director, or controlled entity is $100,000 or more.\n\t\t\t\tIf approved by the committee described in clause (ii), the approval shall be specifically reported to the board of directors at its next regular meeting.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"D"},"7":{"id":254715,"text":"No extension, renewal, or renegotiation of any loan or line of credit in excess of the amounts described in subsection C shall be made to any of those individuals or entities or their interests unless it is approved by a majority of the board of directors or by the committee of officers and directors appointed by the board. If approved by the committee, such approval shall be specifically reported to the board of directors at its next regular meeting.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C4","next_prefix":"E"},"8":{"id":254716,"text":"The prohibitions set forth in subsections C and D shall not be construed to require approval by the board of directors for advances under previously authorized lines of credit.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"9":{"id":254717,"text":"The aggregate amount of a savings institution’s loans to its executive officers or directors or their interests shall not be excessive. The Commission may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by savings institutions to those individuals or entities.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14426,"edition_id":1,"name":"Incorporation; Certificate of Authority; Corporate Administration","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 03:48:06","date_modified":"2026-06-26 03:48:06","permalink":{"id":264161,"object_type":"structure","relational_id":14426,"identifier":"2","token":"6.2\/II\/11\/2","url":"\/6.2\/II\/11\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13490,"edition_id":1,"name":"Savings Institutions","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:01","date_modified":"2026-06-26 03:45:01","permalink":{"id":264101,"object_type":"structure","relational_id":13490,"identifier":"11","token":"6.2\/II\/11","url":"\/6.2\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67165,"structure_id":14426,"section_number":"6.2-1114","catch_line":"Application of Virginia Stock Corporation Act and Virginia Nonstock Corporation Act","url":"\/6.2-1114\/","token":"6.2\/II\/11\/2\/6.2-1114","metadata":false},{"id":67065,"structure_id":14426,"section_number":"6.2-1115","catch_line":"Formation of state savings institutions","url":"\/6.2-1115\/","token":"6.2\/II\/11\/2\/6.2-1115","metadata":false},{"id":55786,"structure_id":14426,"section_number":"6.2-1116","catch_line":"Corporation name","url":"\/6.2-1116\/","token":"6.2\/II\/11\/2\/6.2-1116","metadata":false},{"id":86871,"structure_id":14426,"section_number":"6.2-1117","catch_line":"Par value of shares; payment of shares; reacquisitions of shares or acceptance thereof as security; how subscriptions to stock to be paid; disposition of money received before institution opens; stock option plans","url":"\/6.2-1117\/","token":"6.2\/II\/11\/2\/6.2-1117","metadata":false},{"id":57320,"structure_id":14426,"section_number":"6.2-1118","catch_line":"Certificate of authority to do business","url":"\/6.2-1118\/","token":"6.2\/II\/11\/2\/6.2-1118","metadata":false},{"id":83031,"structure_id":14426,"section_number":"6.2-1119","catch_line":"Commissions and other fees for sale of stock not permitted","url":"\/6.2-1119\/","token":"6.2\/II\/11\/2\/6.2-1119","metadata":false},{"id":73082,"structure_id":14426,"section_number":"6.2-1120","catch_line":"Minimum capital requirement","url":"\/6.2-1120\/","token":"6.2\/II\/11\/2\/6.2-1120","metadata":false},{"id":79467,"structure_id":14426,"section_number":"6.2-1121","catch_line":"Board of directors","url":"\/6.2-1121\/","token":"6.2\/II\/11\/2\/6.2-1121","metadata":false},{"id":82570,"structure_id":14426,"section_number":"6.2-1122","catch_line":"Meetings of board of directors","url":"\/6.2-1122\/","token":"6.2\/II\/11\/2\/6.2-1122","metadata":false},{"id":78474,"structure_id":14426,"section_number":"6.2-1123","catch_line":"Notice of meetings of members; determining members entitled to notice or to vote","url":"\/6.2-1123\/","token":"6.2\/II\/11\/2\/6.2-1123","metadata":false},{"id":73534,"structure_id":14426,"section_number":"6.2-1124","catch_line":"Voting rights; proxies","url":"\/6.2-1124\/","token":"6.2\/II\/11\/2\/6.2-1124","metadata":false},{"id":84832,"structure_id":14426,"section_number":"6.2-1125","catch_line":"Access to books and records; communication with members","url":"\/6.2-1125\/","token":"6.2\/II\/11\/2\/6.2-1125","metadata":false},{"id":69406,"structure_id":14426,"section_number":"6.2-1126","catch_line":"Audit of savings institution; report","url":"\/6.2-1126\/","token":"6.2\/II\/11\/2\/6.2-1126","metadata":false},{"id":82490,"structure_id":14426,"section_number":"6.2-1127","catch_line":"Bonds of officers and employees","url":"\/6.2-1127\/","token":"6.2\/II\/11\/2\/6.2-1127","metadata":false},{"id":70597,"structure_id":14426,"section_number":"6.2-1128","catch_line":"Loans to executive officers or directors","url":"\/6.2-1128\/","token":"6.2\/II\/11\/2\/6.2-1128","metadata":false},{"id":74367,"structure_id":14426,"section_number":"6.2-1129","catch_line":"Overdrafts by savings institution officers, directors or employees","url":"\/6.2-1129\/","token":"6.2\/II\/11\/2\/6.2-1129","metadata":false},{"id":63419,"structure_id":14426,"section_number":"6.2-1130","catch_line":"Reserves; surplus and undivided profits","url":"\/6.2-1130\/","token":"6.2\/II\/11\/2\/6.2-1130","metadata":false},{"id":56309,"structure_id":14426,"section_number":"6.2-1131","catch_line":"Liability of members of mutual savings institutions","url":"\/6.2-1131\/","token":"6.2\/II\/11\/2\/6.2-1131","metadata":false},{"id":60084,"structure_id":14426,"section_number":"6.2-1132","catch_line":"Mutual capital certificates","url":"\/6.2-1132\/","token":"6.2\/II\/11\/2\/6.2-1132","metadata":false}],"previous_section":{"id":82490,"structure_id":14426,"section_number":"6.2-1127","catch_line":"Bonds of officers and employees","url":"\/6.2-1127\/","token":"6.2\/II\/11\/2\/6.2-1127","metadata":false},"next_section":{"id":74367,"structure_id":14426,"section_number":"6.2-1129","catch_line":"Overdrafts by savings institution officers, directors or employees","url":"\/6.2-1129\/","token":"6.2\/II\/11\/2\/6.2-1129","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1128\/","history_text":"

This law was first created in 1982. The record of its establishment is cataloged in chapter 103 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 1982 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1985, chapter 425; in 1995, chapter 83<\/a>; in 1996, chapter 13<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":264219,"object_type":"law","relational_id":70597,"identifier":"6.2-1128","token":"6.2\/II\/11\/2\/6.2-1128","url":"\/6.2-1128\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1128\/","token":"6.2\/II\/11\/2\/6.2-1128","dublin_core":{"Title":"Loans to executive officers or directors","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1128","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “executive officer<\/span>” means an officer of a savings institution<\/span> who participates or has authority to participate in the major policy-making functions of the savings institution<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No executive officer<\/span> or director of any savings institution<\/span> shall borrow any amount more than $25,000 from the institution until such loan has been approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The following loans or lines of credit shall not be made by an institution unless specifically approved by (i) a majority of the directors of the institution or (ii) a committee of officers and directors that includes at least one director appointed by the board of directors with authority to approve loans: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any loan in an amount of $25,000 or more made to any executive officer<\/span> or director of an institution or any entity<\/span> that the Commission<\/span> determines is controlled by one or more executive officers<\/span> or directors; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any loan made to the persons<\/span> or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer<\/span>, director, or controlled entity<\/span> is $100,000 or more; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any line of credit for $25,000 or more made to the persons<\/span> or entities described in subdivision 1; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any line of credit made to the persons<\/span> or entities described in subdivision 1, the amount of which together with all other obligations, direct or indirect, of such executive officer<\/span>, director, or controlled entity<\/span> is $100,000 or more.\n\t\t\t\tIf approved by the committee described in clause (ii), the approval shall be specifically reported to the board of directors at its next regular meeting. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No extension, renewal, or renegotiation of any loan or line of credit in excess of the amounts described in subsection C shall be made to any of those individuals or entities or their interests unless it is approved by a majority of the board of directors or by the committee of officers and directors appointed by the board. If approved by the committee, such approval shall be specifically reported to the board of directors at its next regular meeting. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The prohibitions set forth in subsections C and D shall not be construed to require approval by the board of directors for advances under previously authorized lines of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The aggregate amount of a savings institution<\/span>’s loans to its executive officers<\/span> or directors or their interests shall not be excessive. The Commission<\/span> may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by savings institutions<\/span> to those individuals or entities. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOANS TO EXECUTIVE OFFICERS OR DIRECTORS (\u00a7 6.2-1128)\n\nA. As used in this section, “executive officer” means an officer of\na savings institution who participates or has authority to participate in the\nmajor policy-making functions of the savings institution.\n\nB. No executive officer or director of any savings institution shall borrow any\namount more than $25,000 from the institution until such loan has been approved\nby (i) a majority of the directors of the institution or (ii) a committee of\nofficers and directors that includes at least one director appointed by the\nboard of directors with authority to approve loans.\n\nC. The following loans or lines of credit shall not be made by an institution\nunless specifically approved by (i) a majority of the directors of the\ninstitution or (ii) a committee of officers and directors that includes at least\none director appointed by the board of directors with authority to approve\nloans:\n\n 1. Any loan in an amount of $25,000 or more made to any executive officer or\n director of an institution or any entity that the Commission determines is\n controlled by one or more executive officers or directors;\n\n 2. Any loan made to the persons or entities described in subdivision 1, the\n amount of which together with all other obligations, direct or indirect, of\n such executive officer, director, or controlled entity is $100,000 or more;\n\n 3. Any line of credit for $25,000 or more made to the persons or entities\n described in subdivision 1; or\n\n 4. Any line of credit made to the persons or entities described in subdivision\n 1, the amount of which together with all other obligations, direct or\n indirect, of such executive officer, director, or controlled entity is\n $100,000 or more.\n \t\t\t\tIf approved by the committee described in clause (ii), the approval shall\n be specifically reported to the board of directors at its next regular\n meeting.\n\nD. No extension, renewal, or renegotiation of any loan or line of credit in\nexcess of the amounts described in subsection C shall be made to any of those\nindividuals or entities or their interests unless it is approved by a majority\nof the board of directors or by the committee of officers and directors\nappointed by the board. If approved by the committee, such approval shall be\nspecifically reported to the board of directors at its next regular meeting.\n\nE. The prohibitions set forth in subsections C and D shall not be construed to\nrequire approval by the board of directors for advances under previously\nauthorized lines of credit.\n\nF. The aggregate amount of a savings institution’s loans to its executive\nofficers or directors or their interests shall not be excessive. The Commission\nmay adopt such regulations as may be required to prevent excessive aggregate\namounts of lending by savings institutions to those individuals or entities.\n\nHISTORY: 1982, c. 103, \u00a7 6.1-195.40:1; 1985, c. 425, \u00a7 6.1-194.21; 1995, c.\n83; 1996, c. 13; 2010, c. 794.","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}}