{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1186.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1186.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1186.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1186.html"}],"law_id":71500,"edition_id":1,"section_id":71500,"structure_id":16575,"section_number":"6.2-1186","catch_line":"General investment authority of state savings institutions","history":"Code 1950, \u00a7 6-201.29; 1960, c. 402; 1962, c. 170; 1964, c. 151; 1966, c. 584, \u00a7 6.1-157; 1968, c. 255; 1970, c. 237; 1972, c. 796, \u00a7 6.1-195.34; 1974, c. 284; 1975, c. 448; 1976, cc. 263, 487; 1977, c. 140; 1978, c. 351; 1979, c. 81; 1980, c. 706; 1981, c. 59; 1982, c. 209; 1983, c. 447; 1985, c. 425, \u00a7 6.1-194.69; 1986, c. 509; 1988, c. 4; 1989, cc. 28, 396, 626; 1990, c. 3; 1991, c. 230, \u00a7 6.1-194.136; 1992, c. 51; 1994, c. 330; 2003, c. 353; 2010, c. 794.","full_text":"A\n\nSubject to the powers and limitations regarding real estate loans set forth in \u00a7 6.2-1179, and except as provided in \u00a7 6.2-1187 with respect to state savings banks, the assets of a state savings institution may be invested only:1\n\nIn real and personal property necessary for the conduct of its business and in real estate to be held for its future accommodation. A savings institution may invest in an office building or buildings and appurtenances for the transaction of its business, or for the transaction of such business and for rental. Except as provided in § 6.2-1187 with respect to savings banks, no such investment described in the preceding sentence may be made without the prior approval of the Commissioner if the total amount of the investment exceeds 50 percent of capital stock paid-in and unimpaired and 50 percent of unimpaired combined surplus and undivided profits, or, in the case of a mutual association, 50 percent of general reserve and surplus;2\n\nIn stock and other securities or obligations of a service corporation. Unless specifically authorized by the Commissioner, a state savings institution shall not invest more than 10 percent, in the aggregate, of its assets in the investments specified in this subdivision. A service corporation may charge and collect such finance charges, fees and interest rates as state savings institutions are authorized to charge and collect. A service corporation, directly or indirectly, may engage in providing real estate brokerage services for property owned by a state savings institution owning capital stock in the service corporation, by the service corporation, or a joint venture in which the service corporation is a participant, but no service corporation, state savings institution or holding company that has control, as defined in § 6.2-701, over a state savings institution may engage directly or indirectly in providing real estate brokerage services for property owned by third parties. Nothing in this subdivision shall prohibit (i) a state savings bank or its affiliates or (ii) a holding company that has control over a state savings institution from engaging in third party real estate brokerage in any state, other than the Commonwealth, that permits such activities by its state chartered savings institutions, or their affiliates or holding companies;3\n\nIf the savings institution is a state association, in the purchase of real estate for the purpose of producing income or for inventory and sale or for improvement including the erection of buildings thereon, for sale or rental purposes, and such an association may hold, sell, lease, operate or otherwise exercise the rights of an owner of any such property. Unless specifically authorized by the Commissioner, a state association shall not invest more than 10 percent, in the aggregate, of its assets in the investments specified in this subdivision;4\n\nIn obligations that are fully guaranteed as to principal and interest by the United States or the Commonwealth;5\n\nIn stock or obligations of any Federal Home Loan Bank or Federal Reserve Bank;6\n\nIn obligations of, or issued by, any other state or political subdivision thereof, so long as such obligations continue to hold one of the four highest national investment grade ratings;7\n\nIn obligations of, or issued by, any locality, district, or other political subdivision of the Commonwealth, or any public instrumentality or public authority created by act of the General Assembly, so long as such obligations continue to hold one of the four highest national investment grade ratings;8\n\nIf the savings institution is a state association, in deposits in banks for savings and loan associations;9\n\nIn stock, obligations or other instruments of the Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, or any successor thereto;10\n\nIn obligations of, or guaranteed as to principal and interest by, Canada or any province thereof, provided that the principal and interest of any such obligations are payable in United States funds;11\n\nIn demand, time, or savings deposits, shares or accounts, or other obligations of any financial institution the accounts of which are insured by a federal agency or other insurer approved by the Commissioner;12\n\nIn bankers’ acceptances that are eligible for purchase by Federal Reserve Banks;13\n\nIn loans to individuals for personal, family or household purposes and loans reasonably incident thereto, including loans to dealers in consumer goods for purposes of financing inventory and floor planning. Such loans may be evidenced by installment consumer paper that is transferred to a savings institution by an endorser or guarantor, provided that such paper shall carry a full or limited endorsement or guarantee of the person transferring the same and the savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the maker of such obligation has been evaluated and the savings institution is relying primarily upon such maker for the payment of such obligation;14\n\nLoans secured by savings accounts of the association;15\n\nIn unsecured single payment personal loans to individuals with a term of not more than 12 months;16\n\nIn personal property, which term as used herein shall include fixtures, acquired upon the specific request of and for lease to a customer, subject to the following limitations:\n\t\t\t\ta. The rentals receivable by the association under the initial lease of any item of personal property shall at least equal the cost to the savings institution of such item of personal property;\n\t\t\t\tb. The savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the lessee has been evaluated and approved by such officer; and\n\t\t\t\tc. Upon the expiration of any lease, whether by virtue of the lease agreement or by virtue of the retaking of possession by the association, such personal property shall be relet, sold or otherwise disposed of, or charged off within one year from the time of expiration of such lease;17\n\nIn secured or unsecured credit to cover payment of checks, drafts or other fund transfer orders in excess of the available balance of an account on which they are drawn. Such extensions of credit must be paid off within 30 days after the extension of credit is made. The 30-day limitation on repayment shall apply only to inadvertent overdrafts by the account owner, and shall not apply to extensions of credit, agreed upon in writing, whereby the borrower is permitted to access the line of credit by check, draft or other fund transfer order;18\n\nIn loans for commercial, corporate, business or agricultural purposes. Unless specifically authorized by the Commissioner, (i) a state association shall not invest more than 10 percent of its assets, and (ii) a state savings bank shall not invest more than 20 percent of its assets, in loans for commercial, corporate, business or agricultural purposes. The percentage-of-assets limitations in the preceding sentence shall not apply to overdraft loans, commercial real estate loans, loans to a service corporation the stock of which is owned by the savings institution, or loans to dealers in consumer goods for inventory or floor planning financing;19\n\nIn commercial paper rated in the highest or second highest categories as of the date of purchase, as shown by the most recently published rating by at least two nationally recognized investment rating services;20\n\nIn corporate debt securities, including corporate debt securities convertible into stock, that may be sold with reasonable promptness at a price that corresponds reasonably to their fair market value, and that are rated in at least the third highest category by a nationally recognized investment rating service in its most recently published ratings before the date of purchase of the security;21\n\nIn shares in open-end management investment companies; and22\n\nAny other obligations, instruments or investments that are specifically approved by the Commissioner.B\n\nIn addition to the items authorized by subsection A, a state savings institution may:1\n\nIssue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations; and2\n\nIssue commercial and standby letters of credit in conformance with the Uniform Commercial Code (§ 8.1A-101 et seq.) or the Uniform Customs and Practice for Documentary Credits published as International Chamber of Commerce publication No. 600, and may pledge collateral to secure its obligations thereunder, subject to the following requirements:\n\t\t\t\ta. Each letter of credit shall conspicuously state that it is a letter of credit;\n\t\t\t\tb. The issuer’s undertaking shall contain a specified expiration date or be for a definite term, and shall be limited in amount;\n\t\t\t\tc. The issuer’s obligation to pay shall be solely dependent upon the presentation of conforming documents as specified in the letter of credit, and not upon the factual performance or nonperformance by the parties to the underlying transaction; and\n\t\t\t\td. The account party shall have an unqualified obligation to reimburse the issuer for payments made under the letter of credit.C\n\nThe Commission may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by an association to any one individual or entity.","order_by":null,"text":{"0":{"id":257720,"text":"Subject to the powers and limitations regarding real estate loans set forth in \u00a7 6.2-1179, and except as provided in \u00a7 6.2-1187 with respect to state savings banks, the assets of a state savings institution may be invested only:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":257721,"text":"In real and personal property necessary for the conduct of its business and in real estate to be held for its future accommodation. A savings institution may invest in an office building or buildings and appurtenances for the transaction of its business, or for the transaction of such business and for rental. Except as provided in § 6.2-1187 with respect to savings banks, no such investment described in the preceding sentence may be made without the prior approval of the Commissioner if the total amount of the investment exceeds 50 percent of capital stock paid-in and unimpaired and 50 percent of unimpaired combined surplus and undivided profits, or, in the case of a mutual association, 50 percent of general reserve and surplus;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":257722,"text":"In stock and other securities or obligations of a service corporation. Unless specifically authorized by the Commissioner, a state savings institution shall not invest more than 10 percent, in the aggregate, of its assets in the investments specified in this subdivision. A service corporation may charge and collect such finance charges, fees and interest rates as state savings institutions are authorized to charge and collect. A service corporation, directly or indirectly, may engage in providing real estate brokerage services for property owned by a state savings institution owning capital stock in the service corporation, by the service corporation, or a joint venture in which the service corporation is a participant, but no service corporation, state savings institution or holding company that has control, as defined in § 6.2-701, over a state savings institution may engage directly or indirectly in providing real estate brokerage services for property owned by third parties. Nothing in this subdivision shall prohibit (i) a state savings bank or its affiliates or (ii) a holding company that has control over a state savings institution from engaging in third party real estate brokerage in any state, other than the Commonwealth, that permits such activities by its state chartered savings institutions, or their affiliates or holding companies;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":257723,"text":"If the savings institution is a state association, in the purchase of real estate for the purpose of producing income or for inventory and sale or for improvement including the erection of buildings thereon, for sale or rental purposes, and such an association may hold, sell, lease, operate or otherwise exercise the rights of an owner of any such property. Unless specifically authorized by the Commissioner, a state association shall not invest more than 10 percent, in the aggregate, of its assets in the investments specified in this subdivision;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":257724,"text":"In obligations that are fully guaranteed as to principal and interest by the United States or the Commonwealth;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":257725,"text":"In stock or obligations of any Federal Home Loan Bank or Federal Reserve Bank;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":257726,"text":"In obligations of, or issued by, any other state or political subdivision thereof, so long as such obligations continue to hold one of the four highest national investment grade ratings;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":257727,"text":"In obligations of, or issued by, any locality, district, or other political subdivision of the Commonwealth, or any public instrumentality or public authority created by act of the General Assembly, so long as such obligations continue to hold one of the four highest national investment grade ratings;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":257728,"text":"If the savings institution is a state association, in deposits in banks for savings and loan associations;","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":257729,"text":"In stock, obligations or other instruments of the Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, or any successor thereto;","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":257730,"text":"In obligations of, or guaranteed as to principal and interest by, Canada or any province thereof, provided that the principal and interest of any such obligations are payable in United States funds;","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"A11"},"11":{"id":257731,"text":"In demand, time, or savings deposits, shares or accounts, or other obligations of any financial institution the accounts of which are insured by a federal agency or other insurer approved by the Commissioner;","type":"section","prefixes":["A","11"],"prefix":"11","entire_prefix":"A11","prefix_anchor":"A11","level":2,"prior_prefix":"A10","next_prefix":"A12"},"12":{"id":257732,"text":"In bankers’ acceptances that are eligible for purchase by Federal Reserve Banks;","type":"section","prefixes":["A","12"],"prefix":"12","entire_prefix":"A12","prefix_anchor":"A12","level":2,"prior_prefix":"A11","next_prefix":"A13"},"13":{"id":257733,"text":"In loans to individuals for personal, family or household purposes and loans reasonably incident thereto, including loans to dealers in consumer goods for purposes of financing inventory and floor planning. Such loans may be evidenced by installment consumer paper that is transferred to a savings institution by an endorser or guarantor, provided that such paper shall carry a full or limited endorsement or guarantee of the person transferring the same and the savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the maker of such obligation has been evaluated and the savings institution is relying primarily upon such maker for the payment of such obligation;","type":"section","prefixes":["A","13"],"prefix":"13","entire_prefix":"A13","prefix_anchor":"A13","level":2,"prior_prefix":"A12","next_prefix":"A14"},"14":{"id":257734,"text":"Loans secured by savings accounts of the association;","type":"section","prefixes":["A","14"],"prefix":"14","entire_prefix":"A14","prefix_anchor":"A14","level":2,"prior_prefix":"A13","next_prefix":"A15"},"15":{"id":257735,"text":"In unsecured single payment personal loans to individuals with a term of not more than 12 months;","type":"section","prefixes":["A","15"],"prefix":"15","entire_prefix":"A15","prefix_anchor":"A15","level":2,"prior_prefix":"A14","next_prefix":"A16"},"16":{"id":257736,"text":"In personal property, which term as used herein shall include fixtures, acquired upon the specific request of and for lease to a customer, subject to the following limitations:\n\t\t\t\ta. The rentals receivable by the association under the initial lease of any item of personal property shall at least equal the cost to the savings institution of such item of personal property;\n\t\t\t\tb. The savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the lessee has been evaluated and approved by such officer; and\n\t\t\t\tc. Upon the expiration of any lease, whether by virtue of the lease agreement or by virtue of the retaking of possession by the association, such personal property shall be relet, sold or otherwise disposed of, or charged off within one year from the time of expiration of such lease;","type":"section","prefixes":["A","16"],"prefix":"16","entire_prefix":"A16","prefix_anchor":"A16","level":2,"prior_prefix":"A15","next_prefix":"A17"},"17":{"id":257737,"text":"In secured or unsecured credit to cover payment of checks, drafts or other fund transfer orders in excess of the available balance of an account on which they are drawn. Such extensions of credit must be paid off within 30 days after the extension of credit is made. The 30-day limitation on repayment shall apply only to inadvertent overdrafts by the account owner, and shall not apply to extensions of credit, agreed upon in writing, whereby the borrower is permitted to access the line of credit by check, draft or other fund transfer order;","type":"section","prefixes":["A","17"],"prefix":"17","entire_prefix":"A17","prefix_anchor":"A17","level":2,"prior_prefix":"A16","next_prefix":"A18"},"18":{"id":257738,"text":"In loans for commercial, corporate, business or agricultural purposes. Unless specifically authorized by the Commissioner, (i) a state association shall not invest more than 10 percent of its assets, and (ii) a state savings bank shall not invest more than 20 percent of its assets, in loans for commercial, corporate, business or agricultural purposes. The percentage-of-assets limitations in the preceding sentence shall not apply to overdraft loans, commercial real estate loans, loans to a service corporation the stock of which is owned by the savings institution, or loans to dealers in consumer goods for inventory or floor planning financing;","type":"section","prefixes":["A","18"],"prefix":"18","entire_prefix":"A18","prefix_anchor":"A18","level":2,"prior_prefix":"A17","next_prefix":"A19"},"19":{"id":257739,"text":"In commercial paper rated in the highest or second highest categories as of the date of purchase, as shown by the most recently published rating by at least two nationally recognized investment rating services;","type":"section","prefixes":["A","19"],"prefix":"19","entire_prefix":"A19","prefix_anchor":"A19","level":2,"prior_prefix":"A18","next_prefix":"A20"},"20":{"id":257740,"text":"In corporate debt securities, including corporate debt securities convertible into stock, that may be sold with reasonable promptness at a price that corresponds reasonably to their fair market value, and that are rated in at least the third highest category by a nationally recognized investment rating service in its most recently published ratings before the date of purchase of the security;","type":"section","prefixes":["A","20"],"prefix":"20","entire_prefix":"A20","prefix_anchor":"A20","level":2,"prior_prefix":"A19","next_prefix":"A21"},"21":{"id":257741,"text":"In shares in open-end management investment companies; and","type":"section","prefixes":["A","21"],"prefix":"21","entire_prefix":"A21","prefix_anchor":"A21","level":2,"prior_prefix":"A20","next_prefix":"A22"},"22":{"id":257742,"text":"Any other obligations, instruments or investments that are specifically approved by the Commissioner.","type":"section","prefixes":["A","22"],"prefix":"22","entire_prefix":"A22","prefix_anchor":"A22","level":2,"prior_prefix":"A21","next_prefix":"B"},"23":{"id":257743,"text":"In addition to the items authorized by subsection A, a state savings institution may:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A22","next_prefix":"B1"},"24":{"id":257744,"text":"Issue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"25":{"id":257745,"text":"Issue commercial and standby letters of credit in conformance with the Uniform Commercial Code (§ 8.1A-101 et seq.) or the Uniform Customs and Practice for Documentary Credits published as International Chamber of Commerce publication No. 600, and may pledge collateral to secure its obligations thereunder, subject to the following requirements:\n\t\t\t\ta. Each letter of credit shall conspicuously state that it is a letter of credit;\n\t\t\t\tb. The issuer’s undertaking shall contain a specified expiration date or be for a definite term, and shall be limited in amount;\n\t\t\t\tc. The issuer’s obligation to pay shall be solely dependent upon the presentation of conforming documents as specified in the letter of credit, and not upon the factual performance or nonperformance by the parties to the underlying transaction; and\n\t\t\t\td. The account party shall have an unqualified obligation to reimburse the issuer for payments made under the letter of credit.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"26":{"id":257746,"text":"The Commission may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by an association to any one individual or entity.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":16575,"edition_id":1,"name":"Other Loans and Investments","identifier":"8","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 04:24:50","date_modified":"2026-06-26 04:24:50","permalink":{"id":264461,"object_type":"structure","relational_id":16575,"identifier":"8","token":"6.2\/II\/11\/8","url":"\/6.2\/II\/11\/8\/","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":71500,"structure_id":16575,"section_number":"6.2-1186","catch_line":"General investment authority of state savings institutions","url":"\/6.2-1186\/","token":"6.2\/II\/11\/8\/6.2-1186","metadata":false},{"id":73360,"structure_id":16575,"section_number":"6.2-1187","catch_line":"Investment authority of state savings banks","url":"\/6.2-1187\/","token":"6.2\/II\/11\/8\/6.2-1187","metadata":false},{"id":86451,"structure_id":16575,"section_number":"6.2-1188","catch_line":"Effect of repeal or amendment of statute or regulation on existing loan or investment","url":"\/6.2-1188\/","token":"6.2\/II\/11\/8\/6.2-1188","metadata":false},{"id":75293,"structure_id":16575,"section_number":"6.2-1189","catch_line":"Limitation on liability of savings institutions making loans for certain purposes","url":"\/6.2-1189\/","token":"6.2\/II\/11\/8\/6.2-1189","metadata":false},{"id":73236,"structure_id":16575,"section_number":"6.2-1190","catch_line":"Perfection of certain security interests","url":"\/6.2-1190\/","token":"6.2\/II\/11\/8\/6.2-1190","metadata":false}],"next_section":{"id":73360,"structure_id":16575,"section_number":"6.2-1187","catch_line":"Investment authority of state savings banks","url":"\/6.2-1187\/","token":"6.2\/II\/11\/8\/6.2-1187","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1186\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 27 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 1960, chapter 402; in 1962, chapter 170; in 1964, chapter 151; in 1966, chapter 584; in 1968, chapter 255; in 1970, chapter 237; in 1972, chapter 796; in 1974, chapter 284; in 1975, chapter 448; in 1976, chapters 263 and 487; in 1977, chapter 140; in 1978, chapter 351; in 1979, chapter 81; in 1980, chapter 706; in 1981, chapter 59; in 1982, chapter 209; in 1983, chapter 447; in 1985, chapter 425; in 1986, chapter 509; in 1988, chapter 4; in 1989, chapters 28, 396, and 626; in 1990, chapter 3; in 1991, chapter 230; in 1992, chapter 51; in 1994, chapter 330<\/a>; in 2003, chapter 353<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":73360,"section_number":"6.2-1187","catch_line":"Investment authority of state savings banks","order_by":null,"url":"\/6.2-1187\/"}],"refers_to":[{"id":71550,"section_number":"6.2-1179","catch_line":"Real estate loans; required investment","order_by":null,"url":"\/6.2-1179\/"},{"id":73360,"section_number":"6.2-1187","catch_line":"Investment authority of state savings banks","order_by":null,"url":"\/6.2-1187\/"},{"id":60495,"section_number":"6.2-701","catch_line":"Presumptions regarding control of entities, ownership of shares, and activities of subsidiaries or other entities","order_by":null,"url":"\/6.2-701\/"},{"id":54278,"section_number":"8.1A-101","catch_line":"Short titles","order_by":null,"url":"\/8.1A-101\/"}],"permalink":{"id":264463,"object_type":"law","relational_id":71500,"identifier":"6.2-1186","token":"6.2\/II\/11\/8\/6.2-1186","url":"\/6.2-1186\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1186\/","token":"6.2\/II\/11\/8\/6.2-1186","dublin_core":{"Title":"General investment authority of state savings institutions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1186","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Subject to the powers and limitations regarding real estate loans set forth in \u00a7 6.2-1179<\/a>, and except as provided in \u00a7 6.2-1187<\/a> with respect to state savings banks<\/span>, the assets<\/span> of a state savings institution<\/span> may be invested only: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In real and personal property necessary for the conduct of its business and in real estate to be held for its future accommodation. A savings institution may invest in an office building or buildings and appurtenances for the transaction of its business, or for the transaction of such business and for rental. Except as provided in § 6.2-1187<\/a> with respect to savings banks, no such investment described in the preceding sentence may be made without the prior approval of the Commissioner<\/span> if the total amount of the investment exceeds 50 percent of capital stock paid-in and unimpaired and 50 percent of unimpaired combined surplus and undivided profits, or, in the case of a mutual association<\/span>, 50 percent of general reserve and surplus; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In stock and other securities or obligations of a service corporation<\/span>. Unless specifically authorized by the Commissioner<\/span>, a state savings institution<\/span> shall not invest more than 10 percent, in the aggregate, of its assets<\/span> in the investments specified in this subdivision. A service corporation<\/span> may charge and collect such finance charges, fees and interest rates as state savings institutions<\/span> are authorized to charge and collect. A service corporation<\/span>, directly or indirectly, may engage in providing real estate brokerage services for property owned by a state savings institution<\/span> owning capital stock in the service corporation<\/span>, by the service corporation<\/span>, or a joint venture in which the service corporation<\/span> is a participant, but no service corporation<\/span>, state savings institution<\/span> or holding company that has control, as defined in § 6.2-701<\/a>, over a state savings institution<\/span> may engage directly or indirectly in providing real estate brokerage services for property owned by third parties. Nothing in this subdivision shall prohibit (i) a state savings bank<\/span> or its affiliates or (ii) a holding company that has control over a state savings institution<\/span> from engaging in third party<\/span> real estate brokerage in any state, other than the Commonwealth, that permits such activities by its state chartered savings institutions, or their affiliates or holding companies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the savings institution is a state association<\/span>, in the purchase of real estate for the purpose of producing income or for inventory and sale or for improvement including the erection of buildings thereon, for sale or rental purposes, and such an association may hold, sell, lease, operate or otherwise exercise the rights of an owner of any such property. Unless specifically authorized by the Commissioner<\/span>, a state association<\/span> shall not invest more than 10 percent, in the aggregate, of its assets<\/span> in the investments specified in this subdivision; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In obligations that are fully guaranteed as to principal and interest by the United States or the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> In stock or obligations of any Federal Home Loan<\/span> Bank or Federal Reserve Bank; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> In obligations of, or issued by, any other state or political subdivision thereof, so long as such obligations continue to hold one of the four highest national investment grade ratings; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> In obligations of, or issued by, any locality, district, or other political subdivision of the Commonwealth, or any public instrumentality or public authority created by act of the General Assembly, so long as such obligations continue to hold one of the four highest national investment grade ratings; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> If the savings institution is a state association<\/span>, in deposits in banks for savings and loan associations<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> In stock, obligations or other instruments of the Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan<\/span> Mortgage Corporation, or any successor thereto; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> In obligations of, or guaranteed as to principal and interest by, Canada or any province thereof, provided that the principal and interest of any such obligations are payable in United States funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> In demand, time, or savings deposits, shares or accounts<\/span>, or other obligations of any financial institution<\/span> the accounts<\/span> of which are insured by a federal agency or other insurer approved by the Commissioner<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> In bankers’ acceptances that are eligible for purchase by Federal Reserve Banks; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> In loans to individuals for personal, family or household purposes and loans reasonably incident thereto, including loans to dealers in consumer goods for purposes of financing inventory and floor planning. Such loans may be evidenced by installment consumer paper that is transferred to a savings institution by an endorser or guarantor, provided that such paper shall carry a full or limited endorsement or guarantee of the person<\/span> transferring the same and the savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the maker of such obligation has been evaluated and the savings institution is relying primarily upon such maker for the payment of such obligation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> Loans secured by savings accounts<\/span> of the association; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> In unsecured single payment personal loans to individuals with a term of not more than 12 months; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> In personal property, which term as used herein shall include fixtures, acquired upon the specific request of and for lease to a customer, subject to the following limitations:\n\t\t\t\ta. The rentals receivable by the association under the initial lease of any item of personal property shall at least equal the cost to the savings institution of such item of personal property;\n\t\t\t\tb. The savings institution shall have a certificate of a responsible officer designated by its board for that purpose stating that the responsibility of the lessee has been evaluated and approved by such officer; and\n\t\t\t\tc. Upon the expiration of any lease, whether by virtue of the lease agreement or by virtue of the retaking of possession<\/span> by the association, such personal property shall be relet, sold or otherwise disposed of, or charged off within one year from the time of expiration of such lease; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

17.<\/span> In secured or unsecured credit to cover payment of checks, drafts or other fund transfer orders<\/span> in excess of the available balance of an account<\/span> on which they are drawn. Such extensions of credit must be paid off within 30 days after the extension of credit is made. The 30-day limitation on repayment shall apply only to inadvertent overdrafts by the account<\/span> owner, and shall not apply to extensions of credit, agreed upon in writing, whereby the borrower is permitted to access the line of credit by check, draft or other fund transfer order<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

18.<\/span> In loans for commercial, corporate, business or agricultural purposes. Unless specifically authorized by the Commissioner<\/span>, (i) a state association<\/span> shall not invest more than 10 percent of its assets<\/span>, and (ii) a state savings bank<\/span> shall not invest more than 20 percent of its assets<\/span>, in loans for commercial, corporate, business or agricultural purposes. The percentage-of-assets<\/span> limitations in the preceding sentence shall not apply to overdraft loans, commercial real estate loans, loans to a service corporation<\/span> the stock of which is owned by the savings institution, or loans to dealers in consumer goods for inventory or floor planning financing; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

19.<\/span> In commercial paper rated in the highest or second highest categories as of the date of purchase, as shown by the most recently published rating by at least two nationally recognized investment rating services; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

20.<\/span> In corporate debt securities, including corporate debt securities convertible into stock, that may be sold with reasonable promptness at a price that corresponds reasonably to their fair market value, and that are rated in at least the third highest category by a nationally recognized investment rating service in its most recently published ratings before the date of purchase of the security; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

21.<\/span> In shares in open-end management investment companies; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

22.<\/span> Any other obligations, instruments or investments that are specifically approved by the Commissioner<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In addition to the items authorized by subsection A, a state savings institution<\/span> may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Issue<\/span> credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Issue<\/span> commercial and standby letters of credit in conformance with the Uniform Commercial Code (§ 8.1A-101<\/a> et seq.) or the Uniform Customs and Practice for Documentary Credits published as International Chamber of Commerce publication No. 600, and may pledge collateral<\/span> to secure its obligations thereunder, subject to the following requirements:\n\t\t\t\ta. Each letter of credit shall conspicuously state that it is a letter of credit;\n\t\t\t\tb. The issuer’s undertaking shall contain a specified expiration date or be for a definite term, and shall be limited in amount;\n\t\t\t\tc. The issuer’s obligation to pay shall be solely dependent upon the presentation of conforming documents as specified in the letter of credit, and not upon the factual performance or nonperformance by the parties to the underlying transaction; and\n\t\t\t\td. The account<\/span> party<\/span> shall have an unqualified obligation to reimburse the issuer for payments made under the letter of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Commission<\/span> may adopt such regulations as may be required to prevent excessive aggregate amounts of lending by an association to any one individual or entity<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGENERAL INVESTMENT AUTHORITY OF STATE SAVINGS INSTITUTIONS (\u00a7 6.2-1186)\n\nA. Subject to the powers and limitations regarding real estate loans set forth\nin \u00a7 6.2-1179, and except as provided in \u00a7 6.2-1187 with respect to state\nsavings banks, the assets of a state savings institution may be invested only:\n\n 1. In real and personal property necessary for the conduct of its business and\n in real estate to be held for its future accommodation. A savings institution\n may invest in an office building or buildings and appurtenances for the\n transaction of its business, or for the transaction of such business and for\n rental. Except as provided in § 6.2-1187 with respect to savings banks,\n no such investment described in the preceding sentence may be made without the\n prior approval of the Commissioner if the total amount of the investment\n exceeds 50 percent of capital stock paid-in and unimpaired and 50 percent of\n unimpaired combined surplus and undivided profits, or, in the case of a mutual\n association, 50 percent of general reserve and surplus;\n\n 2. In stock and other securities or obligations of a service corporation.\n Unless specifically authorized by the Commissioner, a state savings\n institution shall not invest more than 10 percent, in the aggregate, of its\n assets in the investments specified in this subdivision. A service corporation\n may charge and collect such finance charges, fees and interest rates as state\n savings institutions are authorized to charge and collect. A service\n corporation, directly or indirectly, may engage in providing real estate\n brokerage services for property owned by a state savings institution owning\n capital stock in the service corporation, by the service corporation, or a\n joint venture in which the service corporation is a participant, but no\n service corporation, state savings institution or holding company that has\n control, as defined in § 6.2-701, over a state savings institution may\n engage directly or indirectly in providing real estate brokerage services for\n property owned by third parties. Nothing in this subdivision shall prohibit\n (i) a state savings bank or its affiliates or (ii) a holding company that has\n control over a state savings institution from engaging in third party real\n estate brokerage in any state, other than the Commonwealth, that permits such\n activities by its state chartered savings institutions, or their affiliates or\n holding companies;\n\n 3. If the savings institution is a state association, in the purchase of real\n estate for the purpose of producing income or for inventory and sale or for\n improvement including the erection of buildings thereon, for sale or rental\n purposes, and such an association may hold, sell, lease, operate or otherwise\n exercise the rights of an owner of any such property. Unless specifically\n authorized by the Commissioner, a state association shall not invest more than\n 10 percent, in the aggregate, of its assets in the investments specified in\n this subdivision;\n\n 4. In obligations that are fully guaranteed as to principal and interest by\n the United States or the Commonwealth;\n\n 5. In stock or obligations of any Federal Home Loan Bank or Federal Reserve\n Bank;\n\n 6. In obligations of, or issued by, any other state or political subdivision\n thereof, so long as such obligations continue to hold one of the four highest\n national investment grade ratings;\n\n 7. In obligations of, or issued by, any locality, district, or other political\n subdivision of the Commonwealth, or any public instrumentality or public\n authority created by act of the General Assembly, so long as such obligations\n continue to hold one of the four highest national investment grade ratings;\n\n 8. If the savings institution is a state association, in deposits in banks for\n savings and loan associations;\n\n 9. In stock, obligations or other instruments of the Federal National Mortgage\n Association, Government National Mortgage Association, Federal Home Loan\n Mortgage Corporation, or any successor thereto;\n\n 10. In obligations of, or guaranteed as to principal and interest by, Canada\n or any province thereof, provided that the principal and interest of any such\n obligations are payable in United States funds;\n\n 11. In demand, time, or savings deposits, shares or accounts, or other\n obligations of any financial institution the accounts of which are insured by\n a federal agency or other insurer approved by the Commissioner;\n\n 12. In bankers’ acceptances that are eligible for purchase by Federal\n Reserve Banks;\n\n 13. In loans to individuals for personal, family or household purposes and\n loans reasonably incident thereto, including loans to dealers in consumer\n goods for purposes of financing inventory and floor planning. Such loans may\n be evidenced by installment consumer paper that is transferred to a savings\n institution by an endorser or guarantor, provided that such paper shall carry\n a full or limited endorsement or guarantee of the person transferring the same\n and the savings institution shall have a certificate of a responsible officer\n designated by its board for that purpose stating that the responsibility of\n the maker of such obligation has been evaluated and the savings institution is\n relying primarily upon such maker for the payment of such obligation;\n\n 14. Loans secured by savings accounts of the association;\n\n 15. In unsecured single payment personal loans to individuals with a term of\n not more than 12 months;\n\n 16. In personal property, which term as used herein shall include fixtures,\n acquired upon the specific request of and for lease to a customer, subject to\n the following limitations:\n \t\t\t\ta. The rentals receivable by the association under the initial lease of\n any item of personal property shall at least equal the cost to the savings\n institution of such item of personal property;\n \t\t\t\tb. The savings institution shall have a certificate of a responsible\n officer designated by its board for that purpose stating that the\n responsibility of the lessee has been evaluated and approved by such officer;\n and\n \t\t\t\tc. Upon the expiration of any lease, whether by virtue of the lease\n agreement or by virtue of the retaking of possession by the association, such\n personal property shall be relet, sold or otherwise disposed of, or charged\n off within one year from the time of expiration of such lease;\n\n 17. In secured or unsecured credit to cover payment of checks, drafts or other\n fund transfer orders in excess of the available balance of an account on which\n they are drawn. Such extensions of credit must be paid off within 30 days\n after the extension of credit is made. The 30-day limitation on repayment\n shall apply only to inadvertent overdrafts by the account owner, and shall not\n apply to extensions of credit, agreed upon in writing, whereby the borrower is\n permitted to access the line of credit by check, draft or other fund transfer\n order;\n\n 18. In loans for commercial, corporate, business or agricultural purposes.\n Unless specifically authorized by the Commissioner, (i) a state association\n shall not invest more than 10 percent of its assets, and (ii) a state savings\n bank shall not invest more than 20 percent of its assets, in loans for\n commercial, corporate, business or agricultural purposes. The\n percentage-of-assets limitations in the preceding sentence shall not apply to\n overdraft loans, commercial real estate loans, loans to a service corporation\n the stock of which is owned by the savings institution, or loans to dealers in\n consumer goods for inventory or floor planning financing;\n\n 19. In commercial paper rated in the highest or second highest categories as\n of the date of purchase, as shown by the most recently published rating by at\n least two nationally recognized investment rating services;\n\n 20. In corporate debt securities, including corporate debt securities\n convertible into stock, that may be sold with reasonable promptness at a price\n that corresponds reasonably to their fair market value, and that are rated in\n at least the third highest category by a nationally recognized investment\n rating service in its most recently published ratings before the date of\n purchase of the security;\n\n 21. In shares in open-end management investment companies; and\n\n 22. Any other obligations, instruments or investments that are specifically\n approved by the Commissioner.\n\nB. In addition to the items authorized by subsection A, a state savings\ninstitution may:\n\n 1. Issue credit cards, extend credit in connection therewith, and otherwise\n engage in or participate in credit card operations; and\n\n 2. Issue commercial and standby letters of credit in conformance with the\n Uniform Commercial Code (§ 8.1A-101 et seq.) or the Uniform Customs and\n Practice for Documentary Credits published as International Chamber of\n Commerce publication No. 600, and may pledge collateral to secure its\n obligations thereunder, subject to the following requirements:\n \t\t\t\ta. Each letter of credit shall conspicuously state that it is a letter of\n credit;\n \t\t\t\tb. The issuer’s undertaking shall contain a specified expiration\n date or be for a definite term, and shall be limited in amount;\n \t\t\t\tc. The issuer’s obligation to pay shall be solely dependent upon the\n presentation of conforming documents as specified in the letter of credit, and\n not upon the factual performance or nonperformance by the parties to the\n underlying transaction; and\n \t\t\t\td. The account party shall have an unqualified obligation to reimburse the\n issuer for payments made under the letter of credit.\n\nC. The Commission may adopt such regulations as may be required to prevent\nexcessive aggregate amounts of lending by an association to any one individual\nor entity.\n\nHISTORY: Code 1950, \u00a7 6-201.29; 1960, c. 402; 1962, c. 170; 1964, c. 151; 1966,\nc. 584, \u00a7 6.1-157; 1968, c. 255; 1970, c. 237; 1972, c. 796, \u00a7 6.1-195.34;\n1974, c. 284; 1975, c. 448; 1976, cc. 263, 487; 1977, c. 140; 1978, c. 351;\n1979, c. 81; 1980, c. 706; 1981, c. 59; 1982, c. 209; 1983, c. 447; 1985, c.\n425, \u00a7 6.1-194.69; 1986, c. 509; 1988, c. 4; 1989, cc. 28, 396, 626; 1990, c.\n3; 1991, c. 230, \u00a7 6.1-194.136; 1992, c. 51; 1994, c. 330; 2003, c. 353; 2010,\nc. 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}}