CHAPTER 230

An Act to amend and reenact § 88.1-397 of the Code of Virginia, relating
to loans on policies of life insurance. 'H 308)

Approved March 12, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 38.1-397 of the Code of Virginia be amended and reenacted so
as to read as follows:

§ 58.1-397. Policy loans.—In each such policy there shall be a pro-
vision that after the policy has been in force three full years, the company
at any time, while the policy is in force, other than as extended term
insurance, will advance, on proper assignment or pledge of the policy and
on the sole security thereof, at a specified rate of interest, not exceeding
six per centum per annum, or, if payable in advance, not exceeding five
and seven-tenths per centum per annum, a sum equal to, or, at the option
of the insured, less than, the amount required by § 38.1-470 under the
conditions specified thereby; and that the company will deduct from such
loan value any indebtedness not already deducted in determining the value
and any unpaid balance of the premium for the current policy year, and
may collect interest in advance on the loan to the end of the current policy
year. This provision shall not be required in term insurance. The policy
may further provide that if the interest on the loan is not paid when due,
it shall be added to the existing loan, and shall bear interest at the same
rate.