Virginia § 13.1-987 - Restrictions on powers of corporation
Full text of Virginia Code of Virginia § 13.1-987 — Restrictions on powers of corporation, with citation guidance and answers to common questions.
§ 13.1-987. Restrictions on powers of corporation
The powers of a corporation shall be subject to the following restrictions:
1. It shall not approve any application for a loan until the applicant shall have shown that he has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan.
2. It shall not incur any secondary liability for the debts of others, but may assume primary liability therefor.
3. It shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due, except that it may give security or priority on loans made to it by any federal agency or instrumentality or by any agency or instrumentality of the Commonwealth of Virginia without securing all loans made to it.
Code 1950, § 13.1-145; 1960, c. 80; 1972, c. 693; 1985, c. 522.
Source: official Virginia text · Last verified 2026-08-27
Frequently Asked Questions About Virginia § 13.1-987
What does Code of Virginia § 13.1-987 cover?
Section 13.1-987 ("Restrictions on powers of corporation") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 13.1-987?
A common citation format is "Code of Virginia § 13.1-987" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 13.1-987 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.