Virginia Code 38.2-1511: Borrowing on pledge of assets
For the purpose of facilitating the delinquency proceeding of an insurer, the Commission, or a receiver other than the Commission with the approval of the court, may borrow money and execute, acknowledge, and deliver notes or other evidences of indebtedness and secure the repayment by mortgage, pledge, assignment, transfer in trust, or hypothecation of any or all of the property, real, personal or mixed, of the insurer. The Commission, or a receiver other than the Commission with the approval of the court, shall have power to take any action necessary and proper to consummate any loans and to provide for repayment. No note or other evidence of indebtedness made or executed by the receiver shall impose upon the receiver any liability except with respect to the assets and other property of the insurer.
Terms Used In Virginia Code 38.2-1511
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Delinquency proceeding: means any proceeding commenced against an insurance company for the purpose of liquidating, rehabilitating, reorganizing, or conserving an insurer. See Virginia Code 38.2-1501
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Receiver: means the Commission or any person appointed to manage delinquency proceedings. See Virginia Code 38.2-1501
1952, c. 317, § 38.1-135; 1986, c. 562.