7671546.2-880Virginia Decodedhttps://vacode.org2016Financial Institutions And ServicesDepository Institutions And Trust OrganizationsBanksInvestments And Loans.Construction loansCode 1950, § 6-78; 1952, c. 25; 1956, c. 622; 1960, c. 23; 1964, c. 150; 1966, c. 584, § 6.1-64; 1970, c. 14; 1972, c. 189; 1981, c. 271; 1991, c. 160; 1995, c. 87; 2006, c. 273; 2010, c. 794.http://law.lis.virginia.gov/vacode/6.2-880/6.2-878Loans secured by real estate generally/6.2-878/6.2-879Certain loans not considered loans secured by real estate/6.2-879//6.2-880/6.2/II/8/9/6.2-8806.2-879A construction loan that is accompanied by a valid and binding agreement to advance an amount equal to or greater than the construction loan upon the completion of the building or improvement, which agreement is entered into by an individual or entity acceptable to the bank or the bank itself, whether or not secured by a mortgage or similar lien on the real estate upon which the building or improvement is being constructed, shall not be considered as a loan secured by real estate within the meaning of § 6.2-878, but shall be classed as an ordinary commercial loan, unless the terms of the transaction shall be more favorable than in the absence of a lien, in which case an appraisal shall be required as provided under § 6.2-878.sectionBB1No bank shall invest in, or be liable in, construction loans in an aggregate amount in excess of 100 percent of its capital and surplus, except that any such loans supported by an executed agreement for permanent financing shall not be included in such aggregate amount.sectionCC1Loans to finance construction of buildings or otherwise to improve real estate may be made under this section or under the provisions of § 6.2-878.sectionDD1Loans made under subsection H of § 6.2-878 or subsection A of § 6.2-879 shall not be treated as construction loans for purposes of the limitations of this section.sectionEE1