38.2-1434 - Mortgage loans.
§ 38.2-1434. Mortgage loans.
Subject to the provisions of § 38.2-1437, a domestic insurer may invest in:
1. Obligations secured by first mortgages or first deeds of trust on improvedunencumbered real property located in the United States;
2. Obligations secured by first mortgages or first deeds of trust uponleasehold estates on improved and otherwise unencumbered real property where:
a. The leasehold interest lasts for a term of not less than ten years beyondthe maturity of the loan as made or as extended; and
b. The mortgagee is subrogated to all the rights of the lessee on foreclosureor on taking a deed in lieu of foreclosure; or
3. Obligations secured by first mortgages or first deeds of trust onunimproved and unencumbered real property in the United States for thepurpose of financing the construction of a building or other improvements onthe real property subject to the mortgage or deed of trust, if:
a. These obligations mature not more than sixty months from the effectivedate of the mortgage or deed of trust and are the unlimited and unconditionalliability of the obligor;
b. The obligor provides the insurer with a completion bond for the buildingor improvements at the time of making the loan; and
c. The insurer at or prior to the making of the loan (i) enters into anagreement with another party to provide permanent financing or (ii) agrees toprovide permanent financing upon completion of the building or otherimprovement.
(1983, c. 457, § 38.1-217.37; 1986, c. 562.)