CHAPTER 151

An Act to amend and reenact § 6-201.29, as amended, of the Code of Vir-
ginia, relating to the investments of savings and loan associations in

this State.
[S 160]

Approved March 3, 1964

Be it enacted by the General Assembly of Virginia:

1. That § 6-201.29, as amended, of the Code of Virginia, be amended
and reenacted as follows:

§ 6-201.29. The assets of an association may be invested in the
following ways and in such ways only:

a. In real estate and in equipment necessary for the conduct of its
business. Such association may invest in an office building or buildings
and appurtenances for the transaction of such association’s business, or
for the transaction of such business and for rental provided that no such
investment may be made without the prior approval of the Commission
if the total amount of the investment exceeds the aggregate amount of
the association’s general reserve and surplus. In the case of stock asso-
ciations, the capital stock account, to the extent that the capital has not
been impaired, shall be treated as a part of general reserve.

b. In obligations of or obligations guaranteed as to principal and
interest by the United States or any agency thereof or of the State of
Virginia or any of its political subdivisions.

ce. In stock or obligations of Federal Home Loan Banks; in stock
or obligations of the Federal Savings and Loan Insurance Corporation ;
in obligations of the Federal National Mortgage Association through
making nonrefundable contributions; in certificates of deposit, time
deposits, savings accounts, or demand deposits of banks insured by the
Federal Deposit Insurance Corporation; and, to the extent of not more
than fifteen per cent of its total assets, in shares of other State asso-
ciations or federal associations.

cl. In the purchase of stock or membership in industrial devel-
opment corporations and in loans to such corporations to the extent
provided by law at any time that the general reserves, surplus and un-
divided profits of the association aggregate a sum in excess of five
per centum of its withdrawable accounts.

d. In loans fully secured by shares of the association.

e. In loans secured by first liens on improved real estate. No such
loan shall exceed thirty-five thousand dollars on each home or combi-
nation of home and business property securing the same. No such loan
shall exceed ninety per cent of the value of the real estate as appraised
by a competent appraiser. Provided that loans insured or guaranteed
by a federal agency may be made on such terms as are acceptable to the
insuring or guaranteeing agency. At least sixty per cent of the assets
shall be invested in such loans unless, because of exceptional conditions
in the real estate market, the Commission permits an association to
deviate from this requirement.
Every such loan shall provide that the borrower shall make regular
periodic payments of principal and interest, in equal or unequal amounts,
the first payment being due not later than twelve months from the
date of the first advance in the case of a loan made for the purpose of
financing the construction of a home or a combination home and business
structure and sixty days from the date of the loan in the case of other
loans, until the mortgage indebtedness and the disbursements, if any,
made by the association for the payment of taxes, insurance premiums,
and other items, together with interest thereon, have been fully paid;
provided, however, that no subsequent periodic payment of principal
and interest shall be greater than any previous periodic payment of
principal and interest, and that no such loan shall be for a longer term
than * thirty years. Loans insured or guaranteed by a federal agency
may be repayable upon such terms as are acceptable to such agency.
The association may compute, charge, and collect interest on monthly
balances by computing the same on the preceding monthly balance and
adding such interest to that balance plus advances for taxes, insurance,
and other lawful charges accruing since the preceding balance, less
credits for payments made by the borrower.

f. Up to fifteen per cent of the assets may be invested in secured
or unsecured loans * for maintenance, repair, modernization, improve-
ment and equipment of * improved real estate or other improved real
estate. Such loans shall be payable monthly and shall not be for a
term longer than five years and shall not exceed three thousand five
hundred dollars.

_ An association may charge and collect in advance the legal rate
of interest upon the entire amount of such loan.

g. Up to twenty per cent of the assets may be invested in other
loans secured by a first lien on improved real estate or other improved
real estate. No such loan shall be for a term longer than * thirty years
nor in excess of seventy-five per cent of the value of the real estate as
appraised by a competent appraiser.

h. Up to five per cent of the assets may be invested in other loans
secured by a first lien on unimproved real estate.