6.1-65 - (Repealed effective October 1, 2010) Form of loans secured by real estate; certain loans not prohibited by § 6.1-63. - Virginia Statutes

§ 6.1-65. (Repealed effective October 1, 2010) Form of loans secured by realestate; certain loans not prohibited by § 6.1-63.

A. A loan secured by real estate within the meaning of § 6.1-63 shall be inthe form of an obligation or obligations executed or assumed by the borrower,secured by mortgage, trust deed or other such instrument upon real estateowned by the borrower, and upon which the bank relies as the principalsecurity for the loan.

B. Where the bank reasonably and prudently relies upon factors other than orin addition to the real estate security (such as general credit standing,guarantees, commitments, or tangible or intangible personal propertysecurity) and enters in its records a written statement of the factors itrelies on, the loan does not constitute a loan secured by real estate withinthe meaning of § 6.1-63, except that if the terms of the transaction shall bemore favorable than in the absence of a lien, an appraisal shall be requiredas provided under § 6.1-63.

C. The provisions of § 6.1-63 shall not be construed to prohibit any bankfrom accepting as security for a loan made in good faith without security orupon security since found to be inadequate an obligation or obligationssecured by mortgage, trust deed, or other such instrument upon real estate.

(Code 1950, § 6-78; 1952, c. 25; 1956, c. 622; 1960, c. 23; 1964, c. 150;1966, c. 584; 1991, c. 160.)