                                 CODE OF VIRGINIA

INVESTMENT IN PERSONAL PROPERTY (§ 38.2-1440)

A. A domestic insurer may invest in interests in tangible personal property for
the production of income, evidenced by trust certificates or other instruments.

B. The investments shall be accompanied by (i) a right to receive rental,
charter hire, purchase or other payments for the use or purchase of the personal
property, (ii) a valid, binding and enforceable contract or lease for the
purchase or use of the tangible personal property, and (iii) a provision for
contractual payments to be made that will return the cost of the property and
provide earnings on the investments within the anticipated useful life of the
property which shall be at least three years.

C. The payments must be made payable or guaranteed by one or more domestic
governmental entities or business entities whose obligations would qualify for
investment under &#xA7; 38.2-1421.

D. The unit cost of such property shall not be less than $25,000, and the cost
of all property covered by any single contract or lease shall not be less than
$100,000.

E. The tangible personal property shall not include furniture or fixtures.

HISTORY: 1983, c. 457, § 38.1-217.43; 1986, c. 562; 1992, c. 588.