13.1-310 - Cooperative associations may give certain liens on rotating stocks.
§ 13.1-310. Cooperative associations may give certain liens on rotatingstocks.
Any cooperative association or corporation organized under the laws of thisCommonwealth, or under the laws of the United States, or qualifying as acooperative association under the laws of the United States, may give assecurity for any loan or loans obtained from any bank for cooperativesorganized under any act of Congress a chattel mortgage or deed of trustcovering 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 toall articles disposed of by the mortgagor up to the time of foreclosure butshall attach to the articles purchased to supply their places; provided,however, no stock of goods shall be pledged by a cooperative associationunless such stock has been fully paid for and is owned by the associationwithout incumbrance at the time it is so pledged.
(Code 1950, § 13-247; 1956, c. 428.)