CHAPTER 64

Act to amend and reenact § 6-251, as amended, of the Code of Virginia,
relating to limitation of powers of industrial loan associations, 80 ax
to impose additional limitations upon certain industrial loan associa-

tions.
[H 32]
Approved February 23, 1960

Be it enacted by the General Assembly of Virginia:

That § 6-251, as amended, of the Code of Virginia, be amended and
acted as follows:

§ 6-251. No such corporation shall *:

1. Advertise that it is subject to regulation or supervision by the State
poration Commission or the Bureau of Banking, or publish any adver-
ment suggesting that it 1s engaged in the business of banking or that tt
Aves deposits.

2. Advertise that it carries insurance unless tts certificates of invest-
t are insured or guaranteed by a State or federal agency or an insurance
pany authorized to do business in Virginia.

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

4. Invest more than 80% of the amount of tts outstanding certtficates
wvestment in loans secured by liens on real estate.

5. Make any loan secured by liens on real estate im excess of two-
ds of the appraised value of the real estate or not in excess of that per

of the appraised value permitted to State banks operating in the
e of Virginia.

6. Issue certificates of investment for the purpose of borrowing money
1 financial institutions.

7. Issue a certificate of investment paying a higher rate of interest
. four and one-half per cent per annum, except that notwithstanding
limitation it may pay at any time an interest rate equal to the highest

paid by any State savings and loan association located in the same
munity in the State of Virginia.

Provided that the provisions of this section shall not apply to any
strial loan association that has no certificate of investment issued and
tanding.