38.2-1439 - Chattel mortgages. - Virginia Statutes

§ 38.2-1439. Chattel mortgages.

A. In connection with a mortgage loan on the security of real propertydesigned and used primarily for residential purposes and acquired pursuant to§ 38.2-1434, a domestic insurer may make a loan on the security of a chattelmortgage, deed of trust or other appropriate lien. The chattel mortgage orother lien may be created separately or in combination with the mortgage loanon the real estate. It shall not exceed five years and shall constitute afirst and prior lien, except for taxes not then delinquent, on personalproperty comprised of durable equipment owned by the mortgagor and kept andused on the mortgaged premises.

B. The term "durable equipment" includes only mechanical refrigerators,mechanical laundering machines, heating and cooking stoves and ranges,mechanical kitchen aids, vacuum cleaners, and fire extinguishing devices;and, for apartment houses and hotels, may also include room furniture andfurnishings.

C. Before any loan or investment is made under this section, the items ofproperty included in the security shall be separately appraised by acompetent appraiser and the fair market value of the items determined. Noloan made under this section shall exceed the lesser of (i) an amountobtained by multiplying the loan to the value ratio applicable to thecompanion loan on the real property by the fair market value of the personalproperty or (ii) an amount equal to twenty percent of the amount secured bythe lien on the real property.

(1983, c. 457, § 38.1-217.42; 1986, c. 562.)