Chap. 295.—An ACT to amend and re-enact Section 5553 of the Code of Virginia,
as heretofore amended, relating to loans by, and the rate of interest allowed to
bankers, brokers and certain other corporations and associaticns. [H B 357]

Approved March 28, 1940

1. Be it enacted by the General Assembly of Virginia, That
section fifty-five hundred and fifty-three of the Code of Virginia, as
heretofore amended, be amended and re-enacted so as to read as
follows:

Section 5553. Any bank, or any broker duly licensed to transact
business under the provisions of sections one hundred and seventy
and/or one hundred and seventy-one of the Tax Code of Virginia,
may loan money or discount bonds, bills, notes or ot1er paper at a
rate not exceeding one-half of one per centum for thirty days, and
may charge a minimum loan or discount fee of one dollar on loans or
discounts, and may receive such interest in advance; srovided, how-
ever, that any bank, as defined by chapter five huncred and seven
of the Acts of the General Assembly of nineteen hundred and twenty-
eight, as amended, may charge in advance the legal cate of interest
upon the entire amount of any loan, payable in weekly, monthly or
other periodical installments, and any note evidenciag such an in-
stallment loan may provide that the entire unpaid talance thereof,
at the option of the holder, shall become due and payable upon de-
fault in payment of any stipulated installment, without impairing
the negotiability of such note, if otherwise negotiable; and provided,
further, that agricultural credit corporations or associations organized
under the laws of this State may charge interest or discount on loans
made for agricultural purposes at a rate not exceeding one and one-
half per centum per annum in excess of the rate charged such agri-
cultural credit corporations or associations by Federal intermediate
credit banks, at the time such loans are made, or said agricultural
credit corporations or associations may in their discr2tion charge the
rate of interest prescribed by section fifty-five hundred and fifty-one
of the Code of Virginia, and acts amendatory thereof and in either
case, such agricultural credit corporations or associations may charge
a minimum loan or discount fee of one dollar on loins or discounts
for thirty days or more and may receive such interest or discount in
either case in advance. For the purpose of this section the term
“bank” shall have the same meaning as that given the term by
Section one of Chapter five hundred and seven of the Acts of the
General Assembly of nineteen hundred and twenty-eight, as hereto-
fore amended, known as the Virginia Banking Act.

Provided, however, that any corporation authcrized by law to
make loans or to purchase or discount bonds, bills, notes, or other
paper, which has been operating under the provisions of this section
of the Code and doing business only in towns and cities of less than
fifteen thousand inhabitants, according to the latest official United
States census, may continue to operate under the »rovisions of this
section in towns and cities of less than fifteen thou;and inhabitants,
until January first, nineteen hundred and forty-three.