38.2-210 - Loans to officers, directors, etc., prohibited. - Virginia Statutes

§ 38.2-210. Loans to officers, directors, etc., prohibited.

A. Except as provided in § 38.2-212, no insurer, legal services plan, healthservices plan, dental or optometric services plan, health maintenanceorganization, or home protection company, transacting business in thisCommonwealth shall make a loan, either directly or indirectly, to any of itsofficers or directors. No such company shall make a loan to any othercorporation or business unit in which any of its officers or directors has asubstantial interest. No such officer or director shall accept or receive anysuch loan directly or indirectly.

B. For the purposes of this section and of § 38.2-211, "a substantialinterest" in any corporation or business unit means an interest equivalentto ownership or control of at least ten percent of its stock or itsequivalent by an officer or director, or the aggregate ownership or controlby all officers and directors of the same company.

(Code 1950, § 38-4.1; 1952, c. 317, § 38.1-33; 1978, c. 701; 1986, c. 562.)