14 Va. Admin. Code § 5-211-40
For the purpose of recognizing surplus notes, no debt shall be considered subordinated unless (i) it qualifies for recognition as a surplus note and can be reported as surplus (equity) in accordance with § 38.2-4300 of the Code of Virginia, and (ii) the subordination clause set forth below is executed by the health maintenance organization and the lender.
Subordination Clause
The rights of lender to the principal sum and/or accrued interest thereon are and shall remain subject to and subordinate to all other liabilities of health maintenance organization, and, upon the dissolution or liquidation of health maintenance organization, no payment upon this instrument shall be made until all other liabilities of the plan shall have been paid. It is further agreed to by and between the parties hereto that written approval from the State Corporation Commission must be obtained prior to any repayment of principal or payment of interest.
14 Va. Admin. Code § 5-211-40
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.