38.2-1421 - Business entity obligations. - Virginia Statutes

§ 38.2-1421. Business entity obligations.

A. High grade. A domestic insurer may invest in any high grade obligationsissued, assumed or guaranteed by any solvent business entity that is not indefault as to principal or interest on the date of investment and which iscreated or existing under the laws of the United States or any state.

B. Medium grade. A domestic issuer may invest in medium grade obligationsissued, assumed or guaranteed by any solvent business entity that is not indefault as to principal or interest on the date of investment and which iscreated or existing under the laws of the United States or any state.

C. Lower grade. A domestic insurer may invest in lower grade obligationsrated 4 by the Securities Valuation Office of the National Association ofInsurance Commissioners or, if not rated by the Securities Valuation Office,rated in an equivalent grade by a national rating agency recognized by theCommission that are issued, assumed or guaranteed by any solvent businessentity that is not in default as to principal or interest on the date ofinvestment and which is created or existing under the laws of the UnitedStates or any state.

D. As used in this section, "business entity obligations" shall not includeany mortgage pass-through securities described in § 38.2-1437.1.

(1983, c. 457, § 38.1-217.24; 1986, c. 562; 1992, c. 588; 1998, c. 414.)