38.2-1440 - Investment in personal property. - Virginia Statutes

§ 38.2-1440. Investment in personal property.

A. A domestic insurer may invest in interests in tangible personal propertyfor the production of income, evidenced by trust certificates or otherinstruments.

B. The investments shall be accompanied by (i) a right to receive rental,charter hire, purchase or other payments for the use or purchase of thepersonal property, (ii) a valid, binding and enforceable contract or leasefor the purchase or use of the tangible personal property, and (iii) aprovision for contractual payments to be made that will return the cost ofthe property and provide earnings on the investments within the anticipateduseful life of the property which shall be at least three years.

C. The payments must be made payable or guaranteed by one or more domesticgovernmental entities or business entities whose obligations would qualifyfor investment under § 38.2-1421.

D. The unit cost of such property shall not be less than $25,000, and thecost of all property covered by any single contract or lease shall not beless than $100,000.

E. The tangible personal property shall not include furniture or fixtures.

(1983, c. 457, § 38.1-217.43; 1986, c. 562; 1992, c. 588.)