38.2-1419 - Railroad terminal and other securities.
§ 38.2-1419. Railroad terminal and other securities.
A domestic insurer may invest in obligations secured by first mortgages,first deeds of trust or other similar liens upon terminal, depot or tunnelproperty, including lands, buildings and appurtenances, used in the serviceof transportation by one or more railroad corporations whose obligations areeligible as investments under § 38.2-1421. However, these obligations shallbe (i) the direct obligation of the corporation or corporations, or (ii)guaranteed by endorsement by, or guaranteed by endorsement assumed by thecorporation for the payment of principal and interest of those obligations.If the guarantee or assumption of guarantee is by two or more of thecorporations, it shall be joint and several as to each. No such investmentshall be made if there has been any default in the payment of principal orinterest since the issuance of the obligations but not to exceed five yearsfrom the date of investment.
(1983, c. 457, § 38.1-217.22; 1986, c. 562.)