                                 CODE OF VIRGINIA

LOANS TO EXECUTIVE OFFICERS OR DIRECTORS (§ 6.2-1128)

A. As used in this section, &#8220;executive officer&#8221; means an officer of
a savings institution who participates or has authority to participate in the
major policy-making functions of the savings institution.

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

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

   1. Any loan in an amount of $25,000 or more made to any executive officer or
   director of an institution or any entity that the Commission determines is
   controlled by one or more executive officers or directors;

   2. Any loan made to the persons or entities described in subdivision 1, the
   amount of which together with all other obligations, direct or indirect, of
   such executive officer, director, or controlled entity is $100,000 or more;

   3. Any line of credit for $25,000 or more made to the persons or entities
   described in subdivision 1; or

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

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

E. The prohibitions set forth in subsections C and D shall not be construed to
require approval by the board of directors for advances under previously
authorized lines of credit.

F. The aggregate amount of a savings institution&#8217;s loans to its executive
officers or directors or their interests shall not be excessive. The Commission
may adopt such regulations as may be required to prevent excessive aggregate
amounts of lending by savings institutions to those individuals or entities.

HISTORY: 1982, c. 103, § 6.1-195.40:1; 1985, c. 425, § 6.1-194.21; 1995, c.
83; 1996, c. 13; 2010, c. 794.