38.2-1438 - Renewals and extensions when value of property decreases. - Virginia Statutes

§ 38.2-1438. Renewals and extensions when value of property decreases.

Nothing in this chapter shall prohibit a domestic insurer from renewing orextending, or consenting to the renewal or extension of, evidences ofindebtedness secured by real property or leasehold estates for the originalor a lesser amount when a decrease in value of the property or estate causesthe indebtedness to exceed the applicable loan-to-value ratio specified by §38.2-1437. Nothing in this chapter shall prohibit a domestic insurer fromaccepting as part payment for any real property or leasehold estate sold byit, a mortgage or other lien on the real property or leasehold estatesecuring a loan that exceeds the applicable loan-to-value ratio specified in§ 38.2-1437.

(1983, c. 457, § 38.1-217.41; 1986, c. 562.)