                                 CODE OF VIRGINIA

LOANS TO OFFICERS, DIRECTORS, ETC., PROHIBITED (§ 38.2-210)

A. Except as provided in &#xA7; 38.2-212, no insurer, legal services plan,
health services plan, dental or optometric services plan, health maintenance
organization, or home protection company, transacting business in this
Commonwealth shall make a loan, either directly or indirectly, to any of its
officers or directors. No such company shall make a loan to any other
corporation or business unit in which any of its officers or directors has a
substantial interest. No such officer or director shall accept or receive any
such loan directly or indirectly.

B. For the purposes of this section and of &#xA7; 38.2-211, &#8220;a substantial
interest&#8221; in any corporation or business unit means an interest equivalent
to ownership or control of at least ten percent of its stock or its equivalent
by an officer or director, or the aggregate ownership or control by all officers
and directors of the same company.

HISTORY: Code 1950, § 38-4.1; 1952, c. 317, § 38.1-33; 1978, c. 701; 1986, c.
562.