6.1-194.71 - (Repealed effective October 1, 2010) Limitation on liability of savings institutions making loans for certain purposes. - Virginia Statutes

§ 6.1-194.71. (Repealed effective October 1, 2010) Limitation on liability ofsavings institutions making loans for certain purposes.

A savings institution which makes a loan, the proceeds of which are used ormay be used by the borrower to finance the purchase, design, manufacture,construction, repair, modification or improvement of real or personalproperty for personal use, or for sale or lease to others, or for theacquisition or operation of a business, shall not be held liable to suchborrower or to any third persons (i) for any loss or damage occasioned by anydefect in the real or personal property so purchased, designed, manufactured,constructed, repaired, modified or improved, (ii) for any loss or damageresulting from the failure of the borrower to use due care in the design,manufacture, construction, repair, modification or improvement of any suchreal or personal property, or (iii) for the acts or omissions of the borrowerin acquisition or operation of a business, unless such loss or damage is aresult of an action of the savings institution outside the scope of itsbusiness as a savings institution, or unless the institution has knowinglybeen a party to misrepresentations with respect to such real or personalproperty.

(Code 1950, § 6.1-195.6; 1972, c. 796; 1985, c. 425; 1987, c. 335.)