                                 CODE OF VIRGINIA

RENEWALS AND EXTENSIONS WHEN VALUE OF PROPERTY DECREASES (§ 38.2-1438)

Nothing in this chapter shall prohibit a domestic insurer from renewing or
extending, or consenting to the renewal or extension of, evidences of
indebtedness secured by real property or leasehold estates for the original or a
lesser amount when a decrease in value of the property or estate causes the
indebtedness to exceed the applicable loan-to-value ratio specified by §
38.2-1437. Nothing in this chapter shall prohibit a domestic insurer from
accepting as part payment for any real property or leasehold estate sold by it,
a mortgage or other lien on the real property or leasehold estate securing a
loan that exceeds the applicable loan-to-value ratio specified in § 38.2-1437.

HISTORY: 1983, c. 457, § 38.1-217.41; 1986, c. 562.