{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1407.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1407.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1407.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1407.html"}],"law_id":81385,"edition_id":1,"section_id":81385,"structure_id":13311,"section_number":"6.2-1407","catch_line":"Prohibitions on associations with certificates issued and outstanding; advertisements","history":"Code 1950, \u00a7 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, \u00a7 6.1-232; 1974, cc. 175, 176, \u00a7 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c. 794.","full_text":"A\n\nAn association that has certificates of investment issued and outstanding shall not:1\n\nAdvertise that it carries insurance unless its certificates of investment are insured or guaranteed by a state or federal agency;2\n\nOwn any shares of stock issued by any other corporation except to the extent legal for banks;3\n\nInvest more than 80 percent of the amount of its outstanding certificates of investment in loans secured by liens on real estate;4\n\nMake any loan secured by liens on real estate in excess of that percent of the appraised value permitted to banks;5\n\nIssue certificates of investment for the purpose of borrowing money from financial institutions; or6\n\nIssue a certificate of investment paying a higher rate of interest than four and one-half percent per annum, except that notwithstanding this limitation it may pay at any time an interest rate equal to the highest rate paid by any state savings institution or bank located in the same community in the Commonwealth.B\n\nAn association that has certificates of investment issued and outstanding shall place in a prominent manner in every advertisement for, and upon any document evidencing ownership of, certificates of investment that are not insured by a state or federal agency the words: &#8220;The savings accounts in this association are not insured.&#8221;","order_by":null,"text":{"0":{"id":291641,"text":"An association that has certificates of investment issued and outstanding shall not:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":291642,"text":"Advertise that it carries insurance unless its certificates of investment are insured or guaranteed by a state or federal agency;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":291643,"text":"Own any shares of stock issued by any other corporation except to the extent legal for banks;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":291644,"text":"Invest more than 80 percent of the amount of its outstanding certificates of investment in loans secured by liens on real estate;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":291645,"text":"Make any loan secured by liens on real estate in excess of that percent of the appraised value permitted to banks;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":291646,"text":"Issue certificates of investment for the purpose of borrowing money from financial institutions; or","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":291647,"text":"Issue a certificate of investment paying a higher rate of interest than four and one-half percent per annum, except that notwithstanding this limitation it may pay at any time an interest rate equal to the highest rate paid by any state savings institution or bank located in the same community in the Commonwealth.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":291648,"text":"An association that has certificates of investment issued and outstanding shall place in a prominent manner in every advertisement for, and upon any document evidencing ownership of, certificates of investment that are not insured by a state or federal agency the words: &#8220;The savings accounts in this association are not insured.&#8221;","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6"}},"ancestry":[{"id":13311,"edition_id":1,"name":"Industrial Loan Associations","identifier":"14","label":"chapter","depth":3,"order_by":1,"parent_id":13060,"metadata":{},"date_created":"2026-06-26 03:44:37","date_modified":"2026-06-26 03:44:37","permalink":{"id":265723,"object_type":"structure","relational_id":13311,"identifier":"14","token":"6.2\/III\/14","url":"\/6.2\/III\/14\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13060,"edition_id":1,"name":"Other Regulated Providers of Financial Services","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:12","date_modified":"2026-06-26 03:44:12","permalink":{"id":265721,"object_type":"structure","relational_id":13060,"identifier":"III","token":"6.2\/III","url":"\/6.2\/III\/","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":75973,"structure_id":13311,"section_number":"6.2-1400","catch_line":"Definitions","url":"\/6.2-1400\/","token":"6.2\/III\/14\/6.2-1400","metadata":false},{"id":72615,"structure_id":13311,"section_number":"6.2-1401","catch_line":"Powers of associations","url":"\/6.2-1401\/","token":"6.2\/III\/14\/6.2-1401","metadata":false},{"id":80300,"structure_id":13311,"section_number":"6.2-1402","catch_line":"Use of certain words in name prohibited","url":"\/6.2-1402\/","token":"6.2\/III\/14\/6.2-1402","metadata":false},{"id":54299,"structure_id":13311,"section_number":"6.2-1403","catch_line":"Directors","url":"\/6.2-1403\/","token":"6.2\/III\/14\/6.2-1403","metadata":false},{"id":58370,"structure_id":13311,"section_number":"6.2-1404","catch_line":"Commission may regulate issuance of evidences of debt","url":"\/6.2-1404\/","token":"6.2\/III\/14\/6.2-1404","metadata":false},{"id":84948,"structure_id":13311,"section_number":"6.2-1405","catch_line":"Extent to which associations regarded as banks; conversion of certain associations to banks; new associations not authorized","url":"\/6.2-1405\/","token":"6.2\/III\/14\/6.2-1405","metadata":false},{"id":73785,"structure_id":13311,"section_number":"6.2-1406","catch_line":"Sale of certificates of investment by certain associations prohibited","url":"\/6.2-1406\/","token":"6.2\/III\/14\/6.2-1406","metadata":false},{"id":81385,"structure_id":13311,"section_number":"6.2-1407","catch_line":"Prohibitions on associations with certificates issued and outstanding; advertisements","url":"\/6.2-1407\/","token":"6.2\/III\/14\/6.2-1407","metadata":false},{"id":81810,"structure_id":13311,"section_number":"6.2-1408","catch_line":"Associations to have one office; how office moved","url":"\/6.2-1408\/","token":"6.2\/III\/14\/6.2-1408","metadata":false},{"id":78712,"structure_id":13311,"section_number":"6.2-1409","catch_line":"Prepayment by borrower from association; rebates for unearned interest; prepayment penalty","url":"\/6.2-1409\/","token":"6.2\/III\/14\/6.2-1409","metadata":false},{"id":81838,"structure_id":13311,"section_number":"6.2-1410","catch_line":"Amount of loan","url":"\/6.2-1410\/","token":"6.2\/III\/14\/6.2-1410","metadata":false},{"id":86510,"structure_id":13311,"section_number":"6.2-1411","catch_line":"Retention of books, accounts, and records","url":"\/6.2-1411\/","token":"6.2\/III\/14\/6.2-1411","metadata":false},{"id":64378,"structure_id":13311,"section_number":"6.2-1412","catch_line":"Annual report","url":"\/6.2-1412\/","token":"6.2\/III\/14\/6.2-1412","metadata":false},{"id":80077,"structure_id":13311,"section_number":"6.2-1413","catch_line":"Investigations; examinations","url":"\/6.2-1413\/","token":"6.2\/III\/14\/6.2-1413","metadata":false},{"id":82795,"structure_id":13311,"section_number":"6.2-1414","catch_line":"Annual fees","url":"\/6.2-1414\/","token":"6.2\/III\/14\/6.2-1414","metadata":false},{"id":84791,"structure_id":13311,"section_number":"6.2-1415","catch_line":"Regulations","url":"\/6.2-1415\/","token":"6.2\/III\/14\/6.2-1415","metadata":false},{"id":56855,"structure_id":13311,"section_number":"6.2-1416","catch_line":"Prohibited practices","url":"\/6.2-1416\/","token":"6.2\/III\/14\/6.2-1416","metadata":false},{"id":76898,"structure_id":13311,"section_number":"6.2-1417","catch_line":"Escrow accounts","url":"\/6.2-1417\/","token":"6.2\/III\/14\/6.2-1417","metadata":false},{"id":54528,"structure_id":13311,"section_number":"6.2-1418","catch_line":"Suspension or revocation of authority","url":"\/6.2-1418\/","token":"6.2\/III\/14\/6.2-1418","metadata":false},{"id":55769,"structure_id":13311,"section_number":"6.2-1419","catch_line":"Cease and desist orders","url":"\/6.2-1419\/","token":"6.2\/III\/14\/6.2-1419","metadata":false},{"id":74966,"structure_id":13311,"section_number":"6.2-1420","catch_line":"Notice of proposed suspension or revocation","url":"\/6.2-1420\/","token":"6.2\/III\/14\/6.2-1420","metadata":false},{"id":85973,"structure_id":13311,"section_number":"6.2-1421","catch_line":"Civil penalties","url":"\/6.2-1421\/","token":"6.2\/III\/14\/6.2-1421","metadata":false}],"previous_section":{"id":73785,"structure_id":13311,"section_number":"6.2-1406","catch_line":"Sale of certificates of investment by certain associations prohibited","url":"\/6.2-1406\/","token":"6.2\/III\/14\/6.2-1406","metadata":false},"next_section":{"id":81810,"structure_id":13311,"section_number":"6.2-1408","catch_line":"Associations to have one office; how office moved","url":"\/6.2-1408\/","token":"6.2\/III\/14\/6.2-1408","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1407\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 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 1956, chapter 433; in 1960, chapter 64; in 1966, chapter 584; in 1974, chapters 175 and 176; in 1978, chapter 14; in 1996, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?961+ful+CHAP0016\">16<\/a>; in 2010, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?101+ful+CHAP0794\">794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":265753,"object_type":"law","relational_id":81385,"identifier":"6.2-1407","token":"6.2\/III\/14\/6.2-1407","url":"\/6.2-1407\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1407\/","token":"6.2\/III\/14\/6.2-1407","dublin_core":{"Title":"Prohibitions on associations with certificates issued and outstanding; advertisements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1407","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> An <span class=\"dictionary\">association<\/span> that has certificates of investment issued and outstanding shall not: <a id=\"paragraph-291641\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> Advertise that it carries insurance unless its certificates of investment are insured or guaranteed by a state or federal agency; <a id=\"paragraph-291642\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Own any shares of stock issued by any other corporation except to the extent legal for banks; <a id=\"paragraph-291643\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Invest more than 80 percent of the amount of its outstanding certificates of investment in loans secured by <span class=\"dictionary\">liens<\/span> on real estate; <a id=\"paragraph-291644\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> Make any loan secured by <span class=\"dictionary\">liens<\/span> on real estate in excess of that percent of the appraised value permitted to banks; <a id=\"paragraph-291645\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> <span class=\"dictionary\">Issue<\/span> certificates of investment for the purpose of borrowing money from <span class=\"dictionary\">financial institutions<\/span>; or <a id=\"paragraph-291646\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> <span class=\"dictionary\">Issue<\/span> a certificate of investment paying a higher rate of interest than four and one-half percent per annum, except that notwithstanding this limitation it may pay at any time an interest rate equal to the highest rate paid by any state savings institution or bank located in the same community in the Commonwealth. <a id=\"paragraph-291647\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#A6\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> An <span class=\"dictionary\">association<\/span> that has certificates of investment issued and outstanding shall place in a prominent manner in every advertisement for, and upon any document evidencing ownership of, certificates of investment that are not insured by a state or federal agency the words: &#8220;The savings accounts in this <span class=\"dictionary\">association<\/span> are not insured.&#8221; <a id=\"paragraph-291648\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/6.2-1407\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nPROHIBITIONS ON ASSOCIATIONS WITH CERTIFICATES ISSUED AND OUTSTANDING;\nADVERTISEMENTS (\u00a7 6.2-1407)\n\nA. An association that has certificates of investment issued and outstanding\nshall not:\n\n   1. Advertise that it carries insurance unless its certificates of investment\n   are insured or guaranteed by a state or federal agency;\n\n   2. Own any shares of stock issued by any other corporation except to the\n   extent legal for banks;\n\n   3. Invest more than 80 percent of the amount of its outstanding certificates\n   of investment in loans secured by liens on real estate;\n\n   4. Make any loan secured by liens on real estate in excess of that percent of\n   the appraised value permitted to banks;\n\n   5. Issue certificates of investment for the purpose of borrowing money from\n   financial institutions; or\n\n   6. Issue a certificate of investment paying a higher rate of interest than\n   four and one-half percent per annum, except that notwithstanding this\n   limitation it may pay at any time an interest rate equal to the highest rate\n   paid by any state savings institution or bank located in the same community in\n   the Commonwealth.\n\nB. An association that has certificates of investment issued and outstanding\nshall place in a prominent manner in every advertisement for, and upon any\ndocument evidencing ownership of, certificates of investment that are not\ninsured by a state or federal agency the words: &#8220;The savings accounts in\nthis association are not insured.&#8221;\n\nHISTORY: Code 1950, \u00a7 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, \u00a7\n6.1-232; 1974, cc. 175, 176, \u00a7 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c.\n794.","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}}