6.1-64 - (Repealed effective October 1, 2010) Construction loans. - Virginia Statutes

§ 6.1-64. (Repealed effective October 1, 2010) Construction loans.

Loans made to finance the construction of a building or otherwise to improvereal estate, and having maturities of not to exceed 60 months if accompaniedby a valid and binding agreement to advance an amount equal to or greaterthan the construction loan upon the completion of the building or improvemententered into by an individual, partnership, association, or corporationacceptable to the bank (and including the bank itself), whether or notsecured by a mortgage or similar lien on the real estate upon which thebuilding or improvement is being constructed, shall not be considered as aloan secured by real estate within the meaning of § 6.1-63, but shall beclassed as ordinary commercial loans, unless the terms of the transactionshall be more favorable than in the absence of a lien, in which case anappraisal shall be required as provided under § 6.1-63. No bank shall investin, or be liable in, any such loans in an aggregate amount in excess of 100percent of its capital and surplus, except that any such loans supported byan executed agreement for permanent financing shall not be included in suchaggregate amount. Loans made to finance construction of buildings orotherwise to improve real estate may be made under this section or under theprovisions of § 6.1-65. Loans made under § 6.1-65 shall not be treated asconstruction loans for purposes of the limitations of this section.

(Code 1950, § 6-78; 1952, c. 25; 1956, c. 622; 1960, c. 23; 1964, c. 150;1966, c. 584; 1970, c. 14; 1972, c. 189; 1981, c. 271; 1991, c. 160; 1995, c.87; 2006, c. 273.)