                                 CODE OF VIRGINIA

CHATTEL MORTGAGES (§ 38.2-1439)

A. In connection with a mortgage loan on the security of real property designed
and used primarily for residential purposes and acquired pursuant to &#xA7;
38.2-1434, a domestic insurer may make a loan on the security of a chattel
mortgage, deed of trust or other appropriate lien. The chattel mortgage or other
lien may be created separately or in combination with the mortgage loan on the
real estate. It shall not exceed five years and shall constitute a first and
prior lien, except for taxes not then delinquent, on personal property comprised
of durable equipment owned by the mortgagor and kept and used on the mortgaged
premises.

B. The term &#8220;durable equipment&#8221; includes only mechanical
refrigerators, mechanical laundering machines, heating and cooking stoves and
ranges, mechanical kitchen aids, vacuum cleaners, and fire extinguishing
devices; and, for apartment houses and hotels, may also include room furniture
and furnishings.

C. Before any loan or investment is made under this section, the items of
property included in the security shall be separately appraised by a competent
appraiser and the fair market value of the items determined. No loan made under
this section shall exceed the lesser of (i) an amount obtained by multiplying
the loan to the value ratio applicable to the companion loan on the real
property by the fair market value of the personal property or (ii) an amount
equal to twenty percent of the amount secured by the lien on the real property.

HISTORY: 1983, c. 457, § 38.1-217.42; 1986, c. 562.