§ 6.1-65. Form of loans secured by real estate; certain loans not prohibited by { 6.1-63
A. A loan secured by real estate within the meaning of § 6.1-63 shall be in the form of an obligation or obligations executed or assumed by the borrower, secured by mortgage, trust deed or other such instrument upon real estate owned by the borrower, and upon which the bank relies as the principal security for the loan.
B. Where the bank reasonably and prudently relies upon factors other than or in addition to the real estate security (such as general credit standing, guarantees, commitments, or tangible or intangible personal property security) and enters in its records a written statement of the factors it relies on, the loan does not constitute a loan secured by real estate within the meaning of § 6.1-63, except that if the terms of the transaction shall be more favorable than in the absence of a lien, an appraisal shall be required as provided under § 6.1-63.
C. The provisions of § 6.1-63 shall not be construed to prohibit any bank from accepting as security for a loan made in good faith without security or upon security since found to be inadequate an obligation or obligations secured 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.)
Sections: Previous 6.1-60 6.1-60.1 6.1-61 6.1-62 6.1-62.1 6.1-63 6.1-64 6.1-65 6.1-65.1 6.1-66 6.1-67 6.1-68 6.1-68.1 6.1-69 6.1-70 NextLast modified: April 16, 2009