§ 6.2-1407. (Effective October 1, 2010) Prohibitions on associations withcertificates issued and outstanding; advertisements.
A. An association that has certificates of investment issued and outstandingshall not:
1. Advertise that it carries insurance unless its certificates of investmentare insured or guaranteed by a state or federal agency;
2. Own any shares of stock issued by any other corporation except to theextent legal for banks;
3. Invest more than 80 percent of the amount of its outstanding certificatesof investment in loans secured by liens on real estate;
4. Make any loan secured by liens on real estate in excess of that percent ofthe appraised value permitted to banks;
5. Issue certificates of investment for the purpose of borrowing money fromfinancial institutions; or
6. Issue a certificate of investment paying a higher rate of interest thanfour and one-half percent per annum, except that notwithstanding thislimitation it may pay at any time an interest rate equal to the highest ratepaid by any state savings institution or bank located in the same communityin the Commonwealth.
B. An association that has certificates of investment issued and outstandingshall place in a prominent manner in every advertisement for, and upon anydocument evidencing ownership of, certificates of investment that are notinsured by a state or federal agency the words: "The savings accounts inthis association are not insured."
(Code 1950, § 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, § 6.1-232;1974, cc. 175, 176, § 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c. 794.)
§ 6.2-1407. (Effective October 1, 2010) Prohibitions on associations withcertificates issued and outstanding; advertisements.
A. An association that has certificates of investment issued and outstandingshall not:
1. Advertise that it carries insurance unless its certificates of investmentare insured or guaranteed by a state or federal agency;
2. Own any shares of stock issued by any other corporation except to theextent legal for banks;
3. Invest more than 80 percent of the amount of its outstanding certificatesof investment in loans secured by liens on real estate;
4. Make any loan secured by liens on real estate in excess of that percent ofthe appraised value permitted to banks;
5. Issue certificates of investment for the purpose of borrowing money fromfinancial institutions; or
6. Issue a certificate of investment paying a higher rate of interest thanfour and one-half percent per annum, except that notwithstanding thislimitation it may pay at any time an interest rate equal to the highest ratepaid by any state savings institution or bank located in the same communityin the Commonwealth.
B. An association that has certificates of investment issued and outstandingshall place in a prominent manner in every advertisement for, and upon anydocument evidencing ownership of, certificates of investment that are notinsured by a state or federal agency the words: "The savings accounts inthis association are not insured."
(Code 1950, § 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, § 6.1-232;1974, cc. 175, 176, § 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c. 794.)
§ 6.2-1407. (Effective October 1, 2010) Prohibitions on associations withcertificates issued and outstanding; advertisements.
A. An association that has certificates of investment issued and outstandingshall not:
1. Advertise that it carries insurance unless its certificates of investmentare insured or guaranteed by a state or federal agency;
2. Own any shares of stock issued by any other corporation except to theextent legal for banks;
3. Invest more than 80 percent of the amount of its outstanding certificatesof investment in loans secured by liens on real estate;
4. Make any loan secured by liens on real estate in excess of that percent ofthe appraised value permitted to banks;
5. Issue certificates of investment for the purpose of borrowing money fromfinancial institutions; or
6. Issue a certificate of investment paying a higher rate of interest thanfour and one-half percent per annum, except that notwithstanding thislimitation it may pay at any time an interest rate equal to the highest ratepaid by any state savings institution or bank located in the same communityin the Commonwealth.
B. An association that has certificates of investment issued and outstandingshall place in a prominent manner in every advertisement for, and upon anydocument evidencing ownership of, certificates of investment that are notinsured by a state or federal agency the words: "The savings accounts inthis association are not insured."
(Code 1950, § 6-251; 1956, c. 433; 1960, c. 64; 1966, c. 584, § 6.1-232;1974, cc. 175, 176, § 6.1-232.1; 1978, c. 14; 1996, c. 16; 2010, c. 794.)
