{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/38.2-1426.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/38.2-1426.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/38.2-1426.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/38.2-1426.html"}],"law_id":361439,"edition_id":2,"section_id":361439,"structure_id":51679,"section_number":"38.2-1426","catch_line":"Application of earnings tests","history":"1983, c. 457, \u00a7 38.1-217.29; 1986, c. 562; 1992, c. 588; 2000, c. 155; 2002, c. 147.","full_text":"If the issuing, assuming or guaranteeing business entity has not been in operation for the entire period for which earnings are being applied pursuant to \u00a7 38.2-1424, the earnings tests shall be based upon pro forma statements incorporating statements of any predecessor or constituent business entity for that portion of the earnings tests period that the current business entity was not in operation, if:\n\n1\n\nThe current business entity was formed as a consolidation or a merger of two or more business entities, at least one of which was in operation at the beginning of the period; or\n\n2\n\nThe current business entity has acquired all of the assets of a business entity or any division or other unit of a business entity that was in operation at the beginning of the test period.\n\n","order_by":null,"text":{"0":{"id":1345267,"text":"If the issuing, assuming or guaranteeing business entity has not been in operation for the entire period for which earnings are being applied pursuant to \u00a7 38.2-1424, the earnings tests shall be based upon pro forma statements incorporating statements of any predecessor or constituent business entity for that portion of the earnings tests period that the current business entity was not in operation, if:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1345268,"text":"The current business entity was formed as a consolidation or a merger of two or more business entities, at least one of which was in operation at the beginning of the period; or","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1345269,"text":"The current business entity has acquired all of the assets of a business entity or any division or other unit of a business entity that was in operation at the beginning of the test period.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1"}},"ancestry":[{"id":51679,"edition_id":2,"name":"Category 1 Investments","identifier":"2","label":"article","depth":3,"order_by":2,"parent_id":51677,"metadata":{"child_laws":35,"child_structures":0},"date_created":"2026-08-02 02:46:15","date_modified":"2026-08-02 12:33:03","permalink":{"id":1438949,"object_type":"structure","relational_id":51679,"identifier":"2","token":"38.2\/14\/2","url":"\/38.2\/14\/2\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51677,"edition_id":2,"name":"Investments","identifier":"14","label":"chapter","depth":2,"order_by":14,"parent_id":51644,"metadata":{"child_laws":55,"child_structures":4},"date_created":"2026-08-02 02:46:13","date_modified":"2026-08-02 12:33:02","permalink":{"id":1438889,"object_type":"structure","relational_id":51677,"identifier":"14","token":"38.2\/14","url":"\/38.2\/14\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51644,"edition_id":2,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":88,"parent_id":null,"metadata":{"child_laws":1890,"child_structures":173},"date_created":"2026-08-02 02:45:30","date_modified":"2026-08-02 12:32:55","permalink":{"id":1437663,"object_type":"structure","relational_id":51644,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":361425,"structure_id":51679,"section_number":"38.2-1412","catch_line":"Scope of article","url":"\/38.2-1412\/","token":"38.2\/14\/2\/38.2-1412","metadata":false},{"id":361426,"structure_id":51679,"section_number":"38.2-1413","catch_line":"Investment limits for one obligor, one issue or one loan","url":"\/38.2-1413\/","token":"38.2\/14\/2\/38.2-1413","metadata":false},{"id":361427,"structure_id":51679,"section_number":"38.2-1414","catch_line":"Limits by type of investment","url":"\/38.2-1414\/","token":"38.2\/14\/2\/38.2-1414","metadata":false},{"id":361428,"structure_id":51679,"section_number":"38.2-1415","catch_line":"Obligations of domestic governmental entities","url":"\/38.2-1415\/","token":"38.2\/14\/2\/38.2-1415","metadata":false},{"id":361429,"structure_id":51679,"section_number":"38.2-1416","catch_line":"Canadian governmental obligations","url":"\/38.2-1416\/","token":"38.2\/14\/2\/38.2-1416","metadata":false},{"id":361430,"structure_id":51679,"section_number":"38.2-1417","catch_line":"Canadian corporate obligations","url":"\/38.2-1417\/","token":"38.2\/14\/2\/38.2-1417","metadata":false},{"id":361431,"structure_id":51679,"section_number":"38.2-1418","catch_line":"Obligations of certain international agencies","url":"\/38.2-1418\/","token":"38.2\/14\/2\/38.2-1418","metadata":false},{"id":361432,"structure_id":51679,"section_number":"38.2-1419","catch_line":"Railroad terminal and other securities","url":"\/38.2-1419\/","token":"38.2\/14\/2\/38.2-1419","metadata":false},{"id":361433,"structure_id":51679,"section_number":"38.2-1420","catch_line":"Transportation equipment trust certificates","url":"\/38.2-1420\/","token":"38.2\/14\/2\/38.2-1420","metadata":false},{"id":361434,"structure_id":51679,"section_number":"38.2-1421","catch_line":"Business entity obligations","url":"\/38.2-1421\/","token":"38.2\/14\/2\/38.2-1421","metadata":false},{"id":361435,"structure_id":51679,"section_number":"38.2-1422","catch_line":"Obligations secured by certain leases","url":"\/38.2-1422\/","token":"38.2\/14\/2\/38.2-1422","metadata":false},{"id":361436,"structure_id":51679,"section_number":"38.2-1423","catch_line":"Preferred stocks","url":"\/38.2-1423\/","token":"38.2\/14\/2\/38.2-1423","metadata":false},{"id":361437,"structure_id":51679,"section_number":"38.2-1424","catch_line":"Guaranteed stocks","url":"\/38.2-1424\/","token":"38.2\/14\/2\/38.2-1424","metadata":false},{"id":361438,"structure_id":51679,"section_number":"38.2-1425","catch_line":"Common stock of banks or trust companies","url":"\/38.2-1425\/","token":"38.2\/14\/2\/38.2-1425","metadata":false},{"id":361439,"structure_id":51679,"section_number":"38.2-1426","catch_line":"Application of earnings tests","url":"\/38.2-1426\/","token":"38.2\/14\/2\/38.2-1426","metadata":false},{"id":361443,"structure_id":51679,"section_number":"38.2-1427","catch_line":"Common stock; covered call options","url":"\/38.2-1427\/","token":"38.2\/14\/2\/38.2-1427","metadata":{"court_decisions":""}},{"id":361440,"structure_id":51679,"section_number":"38.2-1427.1","catch_line":"Limited partnerships","url":"\/38.2-1427.1\/","token":"38.2\/14\/2\/38.2-1427.1","metadata":false},{"id":361441,"structure_id":51679,"section_number":"38.2-1427.2","catch_line":"Investment company shares and units of beneficial interest","url":"\/38.2-1427.2\/","token":"38.2\/14\/2\/38.2-1427.2","metadata":false},{"id":361442,"structure_id":51679,"section_number":"38.2-1427.3","catch_line":"Investment authority; subsidiary corporations","url":"\/38.2-1427.3\/","token":"38.2\/14\/2\/38.2-1427.3","metadata":false},{"id":361444,"structure_id":51679,"section_number":"38.2-1428","catch_line":"Derivative instruments","url":"\/38.2-1428\/","token":"38.2\/14\/2\/38.2-1428","metadata":false},{"id":361445,"structure_id":51679,"section_number":"38.2-1429","catch_line":"Lending of securities","url":"\/38.2-1429\/","token":"38.2\/14\/2\/38.2-1429","metadata":false},{"id":361446,"structure_id":51679,"section_number":"38.2-1430","catch_line":"Collateral loans","url":"\/38.2-1430\/","token":"38.2\/14\/2\/38.2-1430","metadata":false},{"id":361447,"structure_id":51679,"section_number":"38.2-1431","catch_line":"Policy loans","url":"\/38.2-1431\/","token":"38.2\/14\/2\/38.2-1431","metadata":false},{"id":361448,"structure_id":51679,"section_number":"38.2-1432","catch_line":"Savings, certificates, etc","url":"\/38.2-1432\/","token":"38.2\/14\/2\/38.2-1432","metadata":false},{"id":361449,"structure_id":51679,"section_number":"38.2-1433","catch_line":"Foreign securities","url":"\/38.2-1433\/","token":"38.2\/14\/2\/38.2-1433","metadata":false},{"id":361450,"structure_id":51679,"section_number":"38.2-1434","catch_line":"Mortgage loans","url":"\/38.2-1434\/","token":"38.2\/14\/2\/38.2-1434","metadata":false},{"id":361451,"structure_id":51679,"section_number":"38.2-1435","catch_line":"Second mortgages; wrap-around mortgages","url":"\/38.2-1435\/","token":"38.2\/14\/2\/38.2-1435","metadata":false},{"id":361452,"structure_id":51679,"section_number":"38.2-1436","catch_line":"Mortgage participations","url":"\/38.2-1436\/","token":"38.2\/14\/2\/38.2-1436","metadata":false},{"id":361454,"structure_id":51679,"section_number":"38.2-1437","catch_line":"Limitations on mortgages","url":"\/38.2-1437\/","token":"38.2\/14\/2\/38.2-1437","metadata":{"court_decisions":""}},{"id":361453,"structure_id":51679,"section_number":"38.2-1437.1","catch_line":"Mortgage pass-through securities","url":"\/38.2-1437.1\/","token":"38.2\/14\/2\/38.2-1437.1","metadata":false},{"id":361455,"structure_id":51679,"section_number":"38.2-1438","catch_line":"Renewals and extensions when value of property decreases","url":"\/38.2-1438\/","token":"38.2\/14\/2\/38.2-1438","metadata":false},{"id":361456,"structure_id":51679,"section_number":"38.2-1439","catch_line":"Chattel mortgages","url":"\/38.2-1439\/","token":"38.2\/14\/2\/38.2-1439","metadata":false},{"id":361457,"structure_id":51679,"section_number":"38.2-1440","catch_line":"Investment in personal property","url":"\/38.2-1440\/","token":"38.2\/14\/2\/38.2-1440","metadata":false},{"id":361458,"structure_id":51679,"section_number":"38.2-1441","catch_line":"Real estate","url":"\/38.2-1441\/","token":"38.2\/14\/2\/38.2-1441","metadata":false},{"id":361459,"structure_id":51679,"section_number":"38.2-1442","catch_line":"Guaranty association obligations","url":"\/38.2-1442\/","token":"38.2\/14\/2\/38.2-1442","metadata":false}],"previous_section":{"id":361438,"structure_id":51679,"section_number":"38.2-1425","catch_line":"Common stock of banks or trust companies","url":"\/38.2-1425\/","token":"38.2\/14\/2\/38.2-1425","metadata":false},"next_section":{"id":361443,"structure_id":51679,"section_number":"38.2-1427","catch_line":"Common stock; covered call options","url":"\/38.2-1427\/","token":"38.2\/14\/2\/38.2-1427","metadata":{"court_decisions":""}},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1426\/","history_text":"<p>This law was first created in 1983. The record of its establishment is cataloged in chapter 457 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1983 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1986, chapter 562; in 1992, chapter 588; in 2000, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?001+ful+CHAP0155\">155<\/a>; in 2002, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?021+ful+CHAP0147\">147<\/a>.<\/p>","references":false,"refers_to":[{"id":361437,"section_number":"38.2-1424","catch_line":"Guaranteed stocks","order_by":null,"url":"\/38.2-1424\/"}],"permalink":{"id":1439007,"object_type":"law","relational_id":361439,"identifier":"38.2-1426","token":"38.2\/14\/2\/38.2-1426","url":"\/38.2-1426\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/38.2-1426\/","token":"38.2\/14\/2\/38.2-1426","dublin_core":{"Title":"Application of earnings tests","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1426","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>If the issuing, assuming or guaranteeing <span class=\"dictionary\">business entity<\/span> has not been in operation for the entire period for which earnings are being applied pursuant to \u00a7&nbsp;<a class=\"law\" title=\"Guaranteed stocks\" href=\"\/38.2-1424\/\">38.2-1424<\/a>, the earnings tests shall be based upon pro forma statements incorporating statements of any predecessor or constituent <span class=\"dictionary\">business entity<\/span> for that portion of the earnings tests period that the current <span class=\"dictionary\">business entity<\/span> was not in operation, if:<\/p><\/section>\n\t\t\t\t\t\t<section id=\"1\"><p><span class=\"prefix-number\">1.<\/span> The current <span class=\"dictionary\">business entity<\/span> was formed as a <span class=\"dictionary\">consolidation<\/span> or a merger of two or more business entities, at least one of which was in operation at the beginning of the period; or <a id=\"paragraph-1345268\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1426\/#1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"2\"><p><span class=\"prefix-number\">2.<\/span> The current <span class=\"dictionary\">business entity<\/span> has acquired all of the <span class=\"dictionary\">assets<\/span> of a <span class=\"dictionary\">business entity<\/span> or any division or other unit of a <span class=\"dictionary\">business entity<\/span> that was in operation at the beginning of the test period. <a id=\"paragraph-1345269\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-1426\/#2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nAPPLICATION OF EARNINGS TESTS (\u00a7 38.2-1426)\n\nIf the issuing, assuming or guaranteeing business entity has not been in\noperation for the entire period for which earnings are being applied pursuant to\n\u00a7 38.2-1424, the earnings tests shall be based upon pro forma statements\nincorporating statements of any predecessor or constituent business entity for\nthat portion of the earnings tests period that the current business entity was\nnot in operation, if:\n\n1. The current business entity was formed as a consolidation or a merger of two\nor more business entities, at least one of which was in operation at the\nbeginning of the period; or\n\n2. The current business entity has acquired all of the assets of a business\nentity or any division or other unit of a business entity that was in operation\nat the beginning of the test period.\n\nHISTORY: 1983, c. 457, \u00a7 38.1-217.29; 1986, c. 562; 1992, c. 588; 2000, c. 155;\n2002, c. 147.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}