{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-887.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-887.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-887.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-887.html"}],"law_id":73096,"edition_id":1,"section_id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","history":"1976, c. 340, \u00a7 6.1-58.2; 1977, c. 190; 1986, c. 638; 1998, c. 48; 2010, c. 794.","full_text":"A\n\nIn addition to the types of business authorized in \u00a7 6.2-885, a controlled subsidiary corporation that is a domestic or foreign corporation, the majority of the voting stock of which is owned, directly or indirectly, by (i) a bank or banks organized under the laws of the United States, (ii) a bank or banks organized under the laws of the Commonwealth, (iii) a bank or banks organized under the laws of another state, or (iv) a bank holding company owning a bank or banks in the Commonwealth or in another state, may be formed to:1\n\nTransact the type of insurance business specified in § 38.2-120 and other insurance normally written under the coverage known as financial institution blanket bonds;2\n\nUnderwrite insurance indemnifying the bank, its holding companies or its affiliates, and their directors and officers against liability; and3\n\nUnderwrite reinsurance of mortgage guaranty insurance, subject to such conditions as the Commission may impose, on loans secured by real estate made or purchased by such controlled reinsurance subsidiary’s affiliates or by a bank owning such controlled subsidiary.B\n\nAny such controlled subsidiary corporation shall (i) transact only the insurance business specifically permitted by this section and (ii) be subject to the further provisions of Title 38.2 otherwise applicable to insurance companies transacting a comparable business.C\n\nThe investment of any bank in the stock, services, or other obligations of such a controlled subsidiary shall not exceed two percent of such bank’s capital, surplus, and undivided profits.","order_by":null,"text":{"0":{"id":263216,"text":"In addition to the types of business authorized in \u00a7 6.2-885, a controlled subsidiary corporation that is a domestic or foreign corporation, the majority of the voting stock of which is owned, directly or indirectly, by (i) a bank or banks organized under the laws of the United States, (ii) a bank or banks organized under the laws of the Commonwealth, (iii) a bank or banks organized under the laws of another state, or (iv) a bank holding company owning a bank or banks in the Commonwealth or in another state, may be formed to:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":263217,"text":"Transact the type of insurance business specified in § 38.2-120 and other insurance normally written under the coverage known as financial institution blanket bonds;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":263218,"text":"Underwrite insurance indemnifying the bank, its holding companies or its affiliates, and their directors and officers against liability; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":263219,"text":"Underwrite reinsurance of mortgage guaranty insurance, subject to such conditions as the Commission may impose, on loans secured by real estate made or purchased by such controlled reinsurance subsidiary’s affiliates or by a bank owning such controlled subsidiary.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":263220,"text":"Any such controlled subsidiary corporation shall (i) transact only the insurance business specifically permitted by this section and (ii) be subject to the further provisions of Title 38.2 otherwise applicable to insurance companies transacting a comparable business.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":263221,"text":"The investment of any bank in the stock, services, or other obligations of such a controlled subsidiary shall not exceed two percent of such bank’s capital, surplus, and undivided profits.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14189,"edition_id":1,"name":"Investments and Loans","identifier":"9","label":"article","depth":4,"order_by":1,"parent_id":13791,"metadata":{},"date_created":"2026-06-26 03:47:11","date_modified":"2026-06-26 03:47:11","permalink":{"id":265643,"object_type":"structure","relational_id":14189,"identifier":"9","token":"6.2\/II\/8\/9","url":"\/6.2\/II\/8\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13791,"edition_id":1,"name":"Banks","identifier":"8","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265065,"object_type":"structure","relational_id":13791,"identifier":"8","token":"6.2\/II\/8","url":"\/6.2\/II\/8\/","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":63411,"structure_id":14189,"section_number":"6.2-870","catch_line":"Limitation of amount invested in bank premises","url":"\/6.2-870\/","token":"6.2\/II\/8\/9\/6.2-870","metadata":false},{"id":64130,"structure_id":14189,"section_number":"6.2-871","catch_line":"Investment in stock or securities of bank service corporations","url":"\/6.2-871\/","token":"6.2\/II\/8\/9\/6.2-871","metadata":false},{"id":61248,"structure_id":14189,"section_number":"6.2-872","catch_line":"For what purpose banks may purchase, hold, and convey real estate","url":"\/6.2-872\/","token":"6.2\/II\/8\/9\/6.2-872","metadata":false},{"id":74353,"structure_id":14189,"section_number":"6.2-873","catch_line":"Additional permissible investments in real estate","url":"\/6.2-873\/","token":"6.2\/II\/8\/9\/6.2-873","metadata":false},{"id":82541,"structure_id":14189,"section_number":"6.2-874","catch_line":"Prohibited uses of bank's own stock; other investments or loans","url":"\/6.2-874\/","token":"6.2\/II\/8\/9\/6.2-874","metadata":false},{"id":57173,"structure_id":14189,"section_number":"6.2-875","catch_line":"Limitations on obligations of borrowers","url":"\/6.2-875\/","token":"6.2\/II\/8\/9\/6.2-875","metadata":false},{"id":55367,"structure_id":14189,"section_number":"6.2-876","catch_line":"Loans to executive officers or directors","url":"\/6.2-876\/","token":"6.2\/II\/8\/9\/6.2-876","metadata":false},{"id":85468,"structure_id":14189,"section_number":"6.2-877","catch_line":"Overdrafts by bank officer or director","url":"\/6.2-877\/","token":"6.2\/II\/8\/9\/6.2-877","metadata":false},{"id":76996,"structure_id":14189,"section_number":"6.2-878","catch_line":"Loans secured by real estate generally","url":"\/6.2-878\/","token":"6.2\/II\/8\/9\/6.2-878","metadata":false},{"id":80117,"structure_id":14189,"section_number":"6.2-879","catch_line":"Certain loans not considered loans secured by real estate","url":"\/6.2-879\/","token":"6.2\/II\/8\/9\/6.2-879","metadata":false},{"id":59260,"structure_id":14189,"section_number":"6.2-880","catch_line":"Construction loans","url":"\/6.2-880\/","token":"6.2\/II\/8\/9\/6.2-880","metadata":false},{"id":78478,"structure_id":14189,"section_number":"6.2-881","catch_line":"Investment in reverse annuity mortgages","url":"\/6.2-881\/","token":"6.2\/II\/8\/9\/6.2-881","metadata":false},{"id":60973,"structure_id":14189,"section_number":"6.2-882","catch_line":"Bank borrowing money or rediscounting its notes","url":"\/6.2-882\/","token":"6.2\/II\/8\/9\/6.2-882","metadata":false},{"id":87132,"structure_id":14189,"section_number":"6.2-883","catch_line":"Acceptance of drafts or bills of exchange; issuance of letters of credit","url":"\/6.2-883\/","token":"6.2\/II\/8\/9\/6.2-883","metadata":false},{"id":76682,"structure_id":14189,"section_number":"6.2-884","catch_line":"Ownership and lease of personal property","url":"\/6.2-884\/","token":"6.2\/II\/8\/9\/6.2-884","metadata":false},{"id":64536,"structure_id":14189,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","url":"\/6.2-885\/","token":"6.2\/II\/8\/9\/6.2-885","metadata":false},{"id":74671,"structure_id":14189,"section_number":"6.2-886","catch_line":"Regulation of controlled subsidiary corporations by Commission","url":"\/6.2-886\/","token":"6.2\/II\/8\/9\/6.2-886","metadata":false},{"id":73096,"structure_id":14189,"section_number":"6.2-887","catch_line":"Insurance business of controlled subsidiary","url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","metadata":false},{"id":69740,"structure_id":14189,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","url":"\/6.2-888\/","token":"6.2\/II\/8\/9\/6.2-888","metadata":false}],"previous_section":{"id":74671,"structure_id":14189,"section_number":"6.2-886","catch_line":"Regulation of controlled subsidiary corporations by Commission","url":"\/6.2-886\/","token":"6.2\/II\/8\/9\/6.2-886","metadata":false},"next_section":{"id":69740,"structure_id":14189,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","url":"\/6.2-888\/","token":"6.2\/II\/8\/9\/6.2-888","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-887\/","history_text":"

This law was first created in 1976. The record of its establishment is cataloged in chapter 340 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 1976 \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 1977, chapter 190; in 1986, chapter 638; in 1998, chapter 48<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":64536,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","order_by":null,"url":"\/6.2-885\/"},{"id":69740,"section_number":"6.2-888","catch_line":"Real estate brokerage business of controlled subsidiary","order_by":null,"url":"\/6.2-888\/"}],"refers_to":[{"id":60879,"section_number":"38.2-120","catch_line":"Fidelity","order_by":null,"url":"\/38.2-120\/"},{"id":64536,"section_number":"6.2-885","catch_line":"Investment in stock or securities of controlled subsidiary corporations","order_by":null,"url":"\/6.2-885\/"}],"permalink":{"id":265713,"object_type":"law","relational_id":73096,"identifier":"6.2-887","token":"6.2\/II\/8\/9\/6.2-887","url":"\/6.2-887\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-887\/","token":"6.2\/II\/8\/9\/6.2-887","dublin_core":{"Title":"Insurance business of controlled subsidiary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-887","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In addition to the types of business authorized in \u00a7 6.2-885<\/a>, a controlled subsidiary corporation that is a domestic or foreign corporation, the majority of the voting stock of which is owned, directly or indirectly, by (i) a bank or banks<\/span> organized under the laws<\/span> of the United States, (ii) a bank or banks<\/span> organized under the laws<\/span> of the Commonwealth, (iii) a bank or banks<\/span> organized under the laws<\/span> of another state, or (iv) a bank holding company<\/span> owning a bank or banks<\/span> in the Commonwealth or in another state, may be formed to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Transact the type of insurance business specified in § 38.2-120<\/a> and other insurance normally written under the coverage known as financial institution<\/span> blanket bonds<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Underwrite insurance indemnifying the bank, its holding companies or its affiliates, and their directors and officers against liability; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Underwrite reinsurance of mortgage guaranty insurance, subject to such conditions as the Commission<\/span> may impose, on loans secured by real estate made or purchased by such controlled reinsurance subsidiary’s affiliates or by a bank owning such controlled subsidiary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any such controlled subsidiary corporation shall (i) transact only the insurance business specifically permitted by this section and (ii) be subject to the further provisions of Title 38.2 otherwise applicable to insurance companies transacting a comparable business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The investment of any bank in the stock, services, or other obligations of such a controlled subsidiary shall not exceed two percent of such bank’s capital, surplus, and undivided profits. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURANCE BUSINESS OF CONTROLLED SUBSIDIARY (\u00a7 6.2-887)\n\nA. In addition to the types of business authorized in \u00a7 6.2-885, a controlled\nsubsidiary corporation that is a domestic or foreign corporation, the majority\nof the voting stock of which is owned, directly or indirectly, by (i) a bank or\nbanks organized under the laws of the United States, (ii) a bank or banks\norganized under the laws of the Commonwealth, (iii) a bank or banks organized\nunder the laws of another state, or (iv) a bank holding company owning a bank or\nbanks in the Commonwealth or in another state, may be formed to:\n\n 1. Transact the type of insurance business specified in § 38.2-120 and\n other insurance normally written under the coverage known as financial\n institution blanket bonds;\n\n 2. Underwrite insurance indemnifying the bank, its holding companies or its\n affiliates, and their directors and officers against liability; and\n\n 3. Underwrite reinsurance of mortgage guaranty insurance, subject to such\n conditions as the Commission may impose, on loans secured by real estate made\n or purchased by such controlled reinsurance subsidiary’s affiliates or\n by a bank owning such controlled subsidiary.\n\nB. Any such controlled subsidiary corporation shall (i) transact only the\ninsurance business specifically permitted by this section and (ii) be subject to\nthe further provisions of Title 38.2 otherwise applicable to insurance companies\ntransacting a comparable business.\n\nC. The investment of any bank in the stock, services, or other obligations of\nsuch a controlled subsidiary shall not exceed two percent of such bank’s\ncapital, surplus, and undivided profits.\n\nHISTORY: 1976, c. 340, \u00a7 6.1-58.2; 1977, c. 190; 1986, c. 638; 1998, c. 48;\n2010, 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}}