Code of Virginia - Title 38.2 Insurance - Section 38.2-1438 Renewals and extensions when value of property decreases

§ 38.2-1438. Renewals and extensions when value of property decreases

Nothing in this chapter shall prohibit a domestic insurer from renewing or extending, or consenting to the renewal or extension of, evidences of indebtedness secured by real property or leasehold estates for the original or a lesser amount when a decrease in value of the property or estate causes the indebtedness to exceed the applicable loan-to-value ratio specified by § 38.2-1437. Nothing in this chapter shall prohibit a domestic insurer from accepting as part payment for any real property or leasehold estate sold by it, a mortgage or other lien on the real property or leasehold estate securing a loan that exceeds the applicable loan-to-value ratio specified in § 38.2-1437.

(1983, c. 457, § 38.1-217.41; 1986, c. 562.)

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Last modified: April 16, 2009