CHAPTER 549

An Act to amend and reenact § 6.1-63, as amended, of the Code of
Virginia, relating to loans secured by real estate.
(S 469]

Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:
1. That § 6.1-63, as amended, of the Code of Virginia be amended and
reenacted as follows:
§ 6.1-63. Limitation on amount of loans secured by real estate
generally.—No bank shall make any loan secured by real estate when
such loan together with all prior liens and encumbrances on such real estate
exceeds fifty percent of the appraised value of the real estate securing such
loan, unless such loan is (a) amortized by level or substantially level
payments of principal and interest due at least as regularly as annually in
amounts which would pay the loan in full over a period of twenty-five years
or less, or (b) amortized by payments of principal due at least as regularly
as annually, which are not less than four percent per annum of the
original principal of the loan and in either of such events, the amount of
the loan, together with all prior liens or encumbrances on such real
estate shall not exceed eighty percent of the appraised value of the real
estate securing such loan.

No bank shall make such loans in an aggregate sum in excess of the
amount of its capital and its surplus or in excess of seventy percent of its
time and savings deposits, whichever is greater.

The appraisals herein required if and when the loan shall equal or
exceed five thousand dollars, shall be made by appraisers appointed by or
by the authority of the board of directors, shall be in writing, signed by
the appraisers, and shall be retained in the files of the bank, subject to
examination of bank examiners. When the loan shall exceed * twenty-five
thousand dollars, the appraisal shall be made by at least two appraisers.
The appraisers so appointed shall be experienced persons competent to
appraise real estate in the locality where the real estate is.