                                 CODE OF VIRGINIA

RAILROAD TERMINAL AND OTHER SECURITIES (§ 38.2-1419)

A domestic insurer may invest in obligations secured by first mortgages, first
deeds of trust or other similar liens upon terminal, depot or tunnel property,
including lands, buildings and appurtenances, used in the service of
transportation by one or more railroad corporations whose obligations are
eligible as investments under § 38.2-1421. However, these obligations shall be
(i) the direct obligation of the corporation or corporations, or (ii) guaranteed
by endorsement by, or guaranteed by endorsement assumed by the corporation for
the payment of principal and interest of those obligations. If the guarantee or
assumption of guarantee is by two or more of the corporations, it shall be joint
and several as to each. No such investment shall be made if there has been any
default in the payment of principal or interest since the issuance of the
obligations but not to exceed five years from the date of investment.

HISTORY: 1983, c. 457, § 38.1-217.22; 1986, c. 562.