{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-328.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-328.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-328.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-328.html"}],"law_id":55296,"edition_id":1,"section_id":55296,"structure_id":13915,"section_number":"6.2-328","catch_line":"Charges allowed on loan secured by subordinate mortgage","history":"1987, c. 622, \u00a7 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998, cc. 69, 89; 2010, c. 794.","full_text":"A\n\nAny lender making a loan secured by a subordinate mortgage or deed of trust may require the borrower to pay, in addition to the loan fee and interest permitted by \u00a7 6.2-327, the actual cost of a credit report, title examination, title insurance, mortgage guaranty insurance, recording fees, surveys, attorney fees, appraisal fees, and a fee to determine if the property securing the loan is located in a special flood hazard area. No other charges of any kind shall be imposed on or be payable by the borrower either to the lender or any other party in connection with such loan other than:1\n\nA fee charged by the settlement agent as defined in § 55.1-1000;2\n\nLate charges in the amount specified in § 6.2-400 and a prepayment penalty permitted under § 6.2-423 that are contracted for; and3\n\nUpon default, court costs, attorney fees, trustee’s commission, and other expenses of collection to which the borrower may be subject as otherwise permitted by law.B\n\nBroker’s or finder’s fees may be paid by the lender from the loan fee or interest permitted under § 6.2-327. A broker’s fee, finder’s fee, or commission not to exceed five percent of the principal amount of the loan may be paid by the borrower if the total of the loan fee permitted under § 6.2-327 and the broker’s fee, finder’s fee, or commission does not exceed five percent of the principal amount of the loan.C\n\nThe premium for any insurance required or provided pursuant to § 6.2-411 shall not be considered a charge imposed on or payable by the borrower in connection with the loan.D\n\nNo charge may be imposed or collected, except as permitted by § 6.2-327, if the loan is not made.E\n\nThis section shall not apply to any loan made by (i) a bank, savings institution, industrial loan association, or credit union or (ii) a seller in a real estate sales transaction who takes a subordinate mortgage or deed of trust on such real estate.F\n\nThe borrower under any loan to which the provisions of this section apply may assert any defense or claim he may have under §§ 6.2-304 and 6.2-305 against any assignee or transferee of the contract of indebtedness.","order_by":null,"text":{"0":{"id":202804,"text":"Any lender making a loan secured by a subordinate mortgage or deed of trust may require the borrower to pay, in addition to the loan fee and interest permitted by \u00a7 6.2-327, the actual cost of a credit report, title examination, title insurance, mortgage guaranty insurance, recording fees, surveys, attorney fees, appraisal fees, and a fee to determine if the property securing the loan is located in a special flood hazard area. No other charges of any kind shall be imposed on or be payable by the borrower either to the lender or any other party in connection with such loan other than:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":202805,"text":"A fee charged by the settlement agent as defined in § 55.1-1000;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":202806,"text":"Late charges in the amount specified in § 6.2-400 and a prepayment penalty permitted under § 6.2-423 that are contracted for; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":202807,"text":"Upon default, court costs, attorney fees, trustee’s commission, and other expenses of collection to which the borrower may be subject as otherwise permitted by law.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":202808,"text":"Broker’s or finder’s fees may be paid by the lender from the loan fee or interest permitted under § 6.2-327. A broker’s fee, finder’s fee, or commission not to exceed five percent of the principal amount of the loan may be paid by the borrower if the total of the loan fee permitted under § 6.2-327 and the broker’s fee, finder’s fee, or commission does not exceed five percent of the principal amount of the loan.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":202809,"text":"The premium for any insurance required or provided pursuant to § 6.2-411 shall not be considered a charge imposed on or payable by the borrower in connection with the loan.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"6":{"id":202810,"text":"No charge may be imposed or collected, except as permitted by § 6.2-327, if the loan is not made.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"7":{"id":202811,"text":"This section shall not apply to any loan made by (i) a bank, savings institution, industrial loan association, or credit union or (ii) a seller in a real estate sales transaction who takes a subordinate mortgage or deed of trust on such real estate.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"8":{"id":202812,"text":"The borrower under any loan to which the provisions of this section apply may assert any defense or claim he may have under §§ 6.2-304 and 6.2-305 against any assignee or transferee of the contract of indebtedness.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13915,"edition_id":1,"name":"Loans Exempt From Limit on Contract Rate of Interest","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13814,"metadata":{},"date_created":"2026-06-26 03:46:17","date_modified":"2026-06-26 03:46:17","permalink":{"id":263377,"object_type":"structure","relational_id":13915,"identifier":"4","token":"6.2\/I\/3\/4","url":"\/6.2\/I\/3\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13814,"edition_id":1,"name":"Interest and Usury","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12853,"metadata":{},"date_created":"2026-06-26 03:45:57","date_modified":"2026-06-26 03:45:57","permalink":{"id":263333,"object_type":"structure","relational_id":13814,"identifier":"3","token":"6.2\/I\/3","url":"\/6.2\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12853,"edition_id":1,"name":"General Provisions","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263251,"object_type":"structure","relational_id":12853,"identifier":"I","token":"6.2\/I","url":"\/6.2\/I\/","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":64100,"structure_id":13915,"section_number":"6.2-309","catch_line":"Charges by banks and savings institutions on installment loans","url":"\/6.2-309\/","token":"6.2\/I\/3\/4\/6.2-309","metadata":false},{"id":77440,"structure_id":13915,"section_number":"6.2-310","catch_line":"Rate of interest chargeable by state banks and savings institutions","url":"\/6.2-310\/","token":"6.2\/I\/3\/4\/6.2-310","metadata":false},{"id":68100,"structure_id":13915,"section_number":"6.2-311","catch_line":"Closed-end installment loans by sellers of goods or services","url":"\/6.2-311\/","token":"6.2\/I\/3\/4\/6.2-311","metadata":false},{"id":71317,"structure_id":13915,"section_number":"6.2-312","catch_line":"Open-end credit plans","url":"\/6.2-312\/","token":"6.2\/I\/3\/4\/6.2-312","metadata":false},{"id":71741,"structure_id":13915,"section_number":"6.2-313","catch_line":"Open-end credit extended by banks or savings institutions","url":"\/6.2-313\/","token":"6.2\/I\/3\/4\/6.2-313","metadata":false},{"id":55614,"structure_id":13915,"section_number":"6.2-314","catch_line":"Motor vehicle purchase loans by subsidiaries and affiliates of banks and savings institutions","url":"\/6.2-314\/","token":"6.2\/I\/3\/4\/6.2-314","metadata":false},{"id":57088,"structure_id":13915,"section_number":"6.2-315","catch_line":"Loans by certain financial institutions or brokers payable on demand or having a term up to one year","url":"\/6.2-315\/","token":"6.2\/I\/3\/4\/6.2-315","metadata":false},{"id":80987,"structure_id":13915,"section_number":"6.2-316","catch_line":"Loans of $5,000 or more made by certain financial institutions","url":"\/6.2-316\/","token":"6.2\/I\/3\/4\/6.2-316","metadata":false},{"id":69996,"structure_id":13915,"section_number":"6.2-317","catch_line":"Loans of $5,000 or more for business or investment purposes","url":"\/6.2-317\/","token":"6.2\/I\/3\/4\/6.2-317","metadata":false},{"id":86413,"structure_id":13915,"section_number":"6.2-318","catch_line":"Loans by credit unions","url":"\/6.2-318\/","token":"6.2\/I\/3\/4\/6.2-318","metadata":false},{"id":73942,"structure_id":13915,"section_number":"6.2-319","catch_line":"Loans by pension plans to participants","url":"\/6.2-319\/","token":"6.2\/I\/3\/4\/6.2-319","metadata":false},{"id":80507,"structure_id":13915,"section_number":"6.2-320","catch_line":"Loans by industrial loan associations","url":"\/6.2-320\/","token":"6.2\/I\/3\/4\/6.2-320","metadata":false},{"id":63304,"structure_id":13915,"section_number":"6.2-321","catch_line":"Loans pursuant to stock option financing programs","url":"\/6.2-321\/","token":"6.2\/I\/3\/4\/6.2-321","metadata":false},{"id":59573,"structure_id":13915,"section_number":"6.2-322","catch_line":"Extensions of credit on pledged securities","url":"\/6.2-322\/","token":"6.2\/I\/3\/4\/6.2-322","metadata":false},{"id":54963,"structure_id":13915,"section_number":"6.2-323","catch_line":"Educational loans by banks or savings institutions","url":"\/6.2-323\/","token":"6.2\/I\/3\/4\/6.2-323","metadata":false},{"id":77770,"structure_id":13915,"section_number":"6.2-324","catch_line":"Educational loans by private institution of higher education","url":"\/6.2-324\/","token":"6.2\/I\/3\/4\/6.2-324","metadata":false},{"id":81140,"structure_id":13915,"section_number":"6.2-325","catch_line":"Certain loans secured by first deed of trust or mortgage","url":"\/6.2-325\/","token":"6.2\/I\/3\/4\/6.2-325","metadata":false},{"id":57847,"structure_id":13915,"section_number":"6.2-326","catch_line":"Fees and charges in connection with loans by real estate lenders","url":"\/6.2-326\/","token":"6.2\/I\/3\/4\/6.2-326","metadata":false},{"id":66025,"structure_id":13915,"section_number":"6.2-327","catch_line":"Certain loans secured by a subordinate deed of trust or mortgage","url":"\/6.2-327\/","token":"6.2\/I\/3\/4\/6.2-327","metadata":false},{"id":55296,"structure_id":13915,"section_number":"6.2-328","catch_line":"Charges allowed on loan secured by subordinate mortgage","url":"\/6.2-328\/","token":"6.2\/I\/3\/4\/6.2-328","metadata":false},{"id":71049,"structure_id":13915,"section_number":"6.2-329","catch_line":"Loans insured or guaranteed by certain governmental agencies","url":"\/6.2-329\/","token":"6.2\/I\/3\/4\/6.2-329","metadata":false}],"previous_section":{"id":66025,"structure_id":13915,"section_number":"6.2-327","catch_line":"Certain loans secured by a subordinate deed of trust or mortgage","url":"\/6.2-327\/","token":"6.2\/I\/3\/4\/6.2-327","metadata":false},"next_section":{"id":71049,"structure_id":13915,"section_number":"6.2-329","catch_line":"Loans insured or guaranteed by certain governmental agencies","url":"\/6.2-329\/","token":"6.2\/I\/3\/4\/6.2-329","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-328\/","history_text":"

This law was first created in 1987. The record of its establishment is cataloged in chapter 622 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 1987 \u201cActs\u201d aren\u2019t available online. It has been modified 5 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 1993, chapter 774; in 1995, chapter 75<\/a>; in 1996, chapter 243<\/a>; in 1998, chapters 69<\/a> and 89<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":78551,"section_number":"6.2-1501","catch_line":"Compliance with chapter; license required; attempts to evade application of chapter","order_by":null,"url":"\/6.2-1501\/"},{"id":57733,"section_number":"6.2-307","catch_line":"Assertion of defenses or claims by borrowers; effect of assignment","order_by":null,"url":"\/6.2-307\/"},{"id":57847,"section_number":"6.2-326","catch_line":"Fees and charges in connection with loans by real estate lenders","order_by":null,"url":"\/6.2-326\/"},{"id":66025,"section_number":"6.2-327","catch_line":"Certain loans secured by a subordinate deed of trust or mortgage","order_by":null,"url":"\/6.2-327\/"}],"refers_to":[{"id":80642,"section_number":"55.1-1000","catch_line":"Definitions","order_by":null,"url":"\/55.1-1000\/"},{"id":54820,"section_number":"6.2-304","catch_line":"Plea of usury; judgment","order_by":null,"url":"\/6.2-304\/"},{"id":87142,"section_number":"6.2-305","catch_line":"Recovery of twice total usurious interest paid; limitation of action; injunction to prevent sale of property pending action; effect of errors in computation","order_by":null,"url":"\/6.2-305\/"},{"id":66025,"section_number":"6.2-327","catch_line":"Certain loans secured by a subordinate deed of trust or mortgage","order_by":null,"url":"\/6.2-327\/"},{"id":85650,"section_number":"6.2-400","catch_line":"Amount of late charge; when charge can be made","order_by":null,"url":"\/6.2-400\/"},{"id":86576,"section_number":"6.2-411","catch_line":"Requirements relating to insurance","order_by":null,"url":"\/6.2-411\/"},{"id":61310,"section_number":"6.2-423","catch_line":"Prepayment of loans secured by certain subordinate mortgages or deeds of trust; rebates for unearned interest","order_by":null,"url":"\/6.2-423\/"}],"permalink":{"id":263455,"object_type":"law","relational_id":55296,"identifier":"6.2-328","token":"6.2\/I\/3\/4\/6.2-328","url":"\/6.2-328\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-328\/","token":"6.2\/I\/3\/4\/6.2-328","dublin_core":{"Title":"Charges allowed on loan secured by subordinate mortgage","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-328","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any lender making a loan<\/span> secured by a subordinate mortgage or deed of trust<\/span> may require the borrower to pay, in addition to the loan<\/span> fee and interest permitted by \u00a7 6.2-327<\/a>, the actual cost of a credit report, title examination, title insurance, mortgage guaranty insurance, recording fees, surveys, attorney fees, appraisal fees, and a fee to determine if the property securing the loan<\/span> is located in a special flood hazard area. No other charges of any kind shall be imposed on or be payable by the borrower either to the lender or any other party<\/span> in connection with such loan<\/span> other than: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A fee charged by the settlement<\/span> agent as defined in § 55.1-1000<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Late charges in the amount specified in § 6.2-400<\/a> and a prepayment penalty<\/span> permitted under § 6.2-423<\/a> that are contracted for; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Upon default<\/span>, court<\/span> costs, attorney fees, trustee’s commission<\/span>, and other expenses of collection to which the borrower may be subject as otherwise permitted by law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Broker’s or finder’s fees may be paid by the lender from the loan<\/span> fee or interest permitted under § 6.2-327<\/a>. A broker’s fee, finder’s fee, or commission<\/span> not to exceed five percent of the principal amount of the loan<\/span> may be paid by the borrower if the total of the loan<\/span> fee permitted under § 6.2-327<\/a> and the broker’s fee, finder’s fee, or commission<\/span> does not exceed five percent of the principal amount of the loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The premium for any insurance required or provided pursuant to § 6.2-411<\/a> shall not be considered a charge imposed on or payable by the borrower in connection with the loan<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No charge may be imposed or collected, except as permitted by § 6.2-327<\/a>, if the loan<\/span> is not made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> This section shall not apply to any loan<\/span> made by (i) a bank<\/span>, savings institution<\/span>, industrial loan<\/span> association, or credit union<\/span> or (ii) a seller in a real estate sales transaction who takes a subordinate mortgage or deed of trust<\/span> on such real estate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The borrower under any loan<\/span> to which the provisions of this section apply may assert any defense or claim he may have under §§ 6.2-304<\/a> and 6.2-305<\/a> against any assignee or transferee of the contract<\/span> of indebtedness. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCHARGES ALLOWED ON LOAN SECURED BY SUBORDINATE MORTGAGE (\u00a7 6.2-328)\n\nA. Any lender making a loan secured by a subordinate mortgage or deed of trust\nmay require the borrower to pay, in addition to the loan fee and interest\npermitted by \u00a7 6.2-327, the actual cost of a credit report, title examination,\ntitle insurance, mortgage guaranty insurance, recording fees, surveys, attorney\nfees, appraisal fees, and a fee to determine if the property securing the loan\nis located in a special flood hazard area. No other charges of any kind shall be\nimposed on or be payable by the borrower either to the lender or any other party\nin connection with such loan other than:\n\n 1. A fee charged by the settlement agent as defined in § 55.1-1000;\n\n 2. Late charges in the amount specified in § 6.2-400 and a prepayment\n penalty permitted under § 6.2-423 that are contracted for; and\n\n 3. Upon default, court costs, attorney fees, trustee’s commission, and\n other expenses of collection to which the borrower may be subject as otherwise\n permitted by law.\n\nB. Broker’s or finder’s fees may be paid by the lender from the loan\nfee or interest permitted under § 6.2-327. A broker’s fee,\nfinder’s fee, or commission not to exceed five percent of the principal\namount of the loan may be paid by the borrower if the total of the loan fee\npermitted under § 6.2-327 and the broker’s fee, finder’s fee,\nor commission does not exceed five percent of the principal amount of the loan.\n\nC. The premium for any insurance required or provided pursuant to § 6.2-411\nshall not be considered a charge imposed on or payable by the borrower in\nconnection with the loan.\n\nD. No charge may be imposed or collected, except as permitted by § 6.2-327,\nif the loan is not made.\n\nE. This section shall not apply to any loan made by (i) a bank, savings\ninstitution, industrial loan association, or credit union or (ii) a seller in a\nreal estate sales transaction who takes a subordinate mortgage or deed of trust\non such real estate.\n\nF. The borrower under any loan to which the provisions of this section apply may\nassert any defense or claim he may have under §§ 6.2-304 and 6.2-305\nagainst any assignee or transferee of the contract of indebtedness.\n\nHISTORY: 1987, c. 622, \u00a7 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243;\n1998, cc. 69, 89; 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}}