                                 CODE OF VIRGINIA

PROHIBITIONS ON ASSOCIATIONS WITH CERTIFICATES ISSUED AND OUTSTANDING;
ADVERTISEMENTS (§ 6.2-1407)

A. An association that has certificates of investment issued and outstanding
shall not:

   1. Advertise that it carries insurance unless its certificates of investment
   are insured or guaranteed by a state or federal agency;

   2. Own any shares of stock issued by any other corporation except to the
   extent legal for banks;

   3. Invest more than 80 percent of the amount of its outstanding certificates
   of investment in loans secured by liens on real estate;

   4. Make any loan secured by liens on real estate in excess of that percent of
   the appraised value permitted to banks;

   5. Issue certificates of investment for the purpose of borrowing money from
   financial institutions; or

   6. Issue a certificate of investment paying a higher rate of interest than
   four and one-half percent per annum, except that notwithstanding this
   limitation it may pay at any time an interest rate equal to the highest rate
   paid by any state savings institution or bank located in the same community in
   the Commonwealth.

B. An association that has certificates of investment issued and outstanding
shall place in a prominent manner in every advertisement for, and upon any
document evidencing ownership of, certificates of investment that are not
insured by a state or federal agency the words: &#8220;The savings accounts in
this association are not insured.&#8221;

HISTORY: Code 1950, § 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, §
6.1-232; 1974, cc. 175, 176, § 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c.
794.