                                 CODE OF VIRGINIA

REAL ESTATE LOANS; REQUIRED INVESTMENT (§ 6.2-1179)

A. A state savings institution may originate, invest in, sell, purchase,
service, participate, or otherwise deal in loans secured by a lien on real
estate, subject to the requirements of this chapter. Such loans that are
insured, guaranteed or made under a firm commitment to be sold, assigned or
otherwise transferred to an agency or instrumentality of the federal government
or to a corporation organized under the laws of the United States, including the
Department of Housing and Urban Development, the Department of Veterans Affairs,
the Federal National Mortgage Association, the Government National Mortgage
Association or the Federal Home Loan Mortgage Corporation, may be made in
accordance with the requirements of such federal agencies, instrumentalities or
corporations.

B. At least 60 percent of assets of a state savings institution shall be
invested in real estate loans. For purposes of meeting this 60-percent
requirement, a savings institution may include (i) loans secured by a lien on a
manufactured building or buildings; (ii) the value of securities held by it that
represent a beneficial interest, participation interest or other similar
interest in loans secured by a lien on real estate including participation
certificates issued by the Federal National Mortgage Association, Government
National Mortgage Association or the Federal Home Loan Mortgage Corporation; and
(iii) the value of liquid assets equal to the minimum liquid asset requirement
for membership in a Federal Home Loan Bank.

C. A state savings institution may not purchase, participate in or acquire an
interest in any real estate loan that it could not legally make, without the
prior approval of the Commissioner.

HISTORY: 1985, c. 425, § 6.1-194.62; 1990, c. 3; 2010, c. 794.