CODE OF VIRGINIA

COOPERATIVE ASSOCIATIONS MAY GIVE CERTAIN LIENS ON ROTATING STOCKS (§ 13.1-310)

Any cooperative association or corporation organized under the laws of this
Commonwealth, or under the laws of the United States, or qualifying as a
cooperative association under the laws of the United States, may give as
security for any loan or loans obtained from any bank for cooperatives organized
under any act of Congress a chattel mortgage or deed of trust covering stocks of
goods or other things in bulk, but changing in specifics, in which case the lien
of such mortgage or deed of trust shall be lost as to all articles disposed of
by the mortgagor up to the time of foreclosure but shall attach to the articles
purchased to supply their places; provided, however, no stock of goods shall be
pledged by a cooperative association unless such stock has been fully paid for
and is owned by the association without incumbrance at the time it is so
pledged.

HISTORY: Code 1950, § 13-247; 1956, c. 428.