6.2-873 - (Effective October 1, 2010) Additional permissible investments in real estate. - Virginia Statutes

§ 6.2-873. (Effective October 1, 2010) Additional permissible investments inreal estate.

A. In addition to the ownership of real estate permitted in § 6.2-872, a bankmay invest:

1. In real estate (i) for the purpose of producing income or for inventoryand sale or (ii) for improvement, including the erection of buildingsthereon, for sale or rental purposes. The bank may hold, sell, lease,operate, or otherwise exercise the rights of an owner of any such property;and

2. In the stock or other securities or obligations of a controlled subsidiarycorporation under § 6.2-885 or 6.2-886 formed or utilized for the purposes insubdivision 1.

B. Unless specifically authorized by the Commissioner:

1. A bank shall not invest more than five percent in the aggregate of itsassets in the investments authorized in subdivisions A 1 and A 2.

2. A bank shall not invest and lend in any one project an amount in excess ofthe loan limit to one borrower as provided in § 6.2-875.

(1988, c. 296, § 6.1-59.1; 2010, c. 794.)