# Va. Code Ann. § 38.2-1225: Contributions

> Virginia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1225

## Section

- **Citation:** Va. Code Ann. § 38.2-1225
- **Heading:** Contributions
- **Jurisdiction:** Virginia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Virginia Code / Title 38.2 / Chapter 12 / Article 2 / Section 38.2-1225

## Text

The attorney or other interested persons may advance to a domestic reciprocal any funds required in its operations. No repayment of the principal, or any payment of interest thereon, in whole or in part, shall be made without the approval of the Commission. The principal advanced and any interest accrued thereon shall not be treated as a liability of the reciprocal until the repayment of principal or payment of interest is approved by the Commission; nonetheless, all statements published or filed shall show accrued interest and the amount of principal remaining unpaid. In the event of a liquidation or dissolution, all claims under the instrument shall be subordinated to subscriber, claimant and beneficiary claims as well as debts owed to all other classes of creditors. The principal advanced shall not be withdrawn or repaid and no payments of interest thereon shall be made unless the reciprocal has sufficient earned surplus in excess of its minimum required surplus. No commission or brokerage shall be paid in acquiring the funds. Interest on the principal advanced shall be at a rate not exceeding the one-year treasury bill interest rate plus three percentage points at the time the loan is made or renewed.

1952, c. 317, § 38.1-713; 1986, c. 562; 1994, c. 503 .

## Nearby sections

- [Va. Code Ann. § 38.2-1219 Organization of reciprocals; what declaration to contain](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1219.md)
- [Va. Code Ann. § 38.2-1220 Attorney to file bond](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1220.md)
- [Va. Code Ann. § 38.2-1221 Deposit instead of bond](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1221.md)
- [Va. Code Ann. § 38.2-1222 Subscribers' advisory committee](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1222.md)
- [Va. Code Ann. § 38.2-1223 Subscriber's agreement and power of attorney](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1223.md)
- [Va. Code Ann. § 38.2-1224 Modification of power of attorney and subscriber's agreement](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1224.md)
- [Va. Code Ann. § 38.2-1225 Contributions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1225.md)
- [Va. Code Ann. § 38.2-1226 Assessments](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1226.md)
- [Va. Code Ann. § 38.2-1227 Time limit for assessment](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1227.md)
- [Va. Code Ann. § 38.2-1228 Subscribers' share in assets](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1228.md)
- [Va. Code Ann. § 38.2-1229 Impaired reciprocals](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1229.md)
- [Va. Code Ann. § 38.2-1230 Material transactions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1230.md)
- [Va. Code Ann. § 38.2-1231 Attorney's financial statement](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1231.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C12_A2_S38.2-1225. Check the current official text before relying on it. Not legal advice.