Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a12.Real estate bonds and mortgages.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest with the direction or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in:
(a) Bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered real property and appurtenances thereto within the UnitedStates of America or any insular or territorial possession of the UnitedStates of America, or the Dominion of Canada, and upon leasehold estatesin real property wherein the term of such including any options toextend is not less than 15 years beyond the maturity of theloan as made or extended. At the date of acquisitionthe total indebtedness secured by such lien shall not exceed 80% ofthe market value of the property uponwhich it is a lien. These limitations shall not apply to obligationsdescribed in subsections (b), (c), (d) and (e) of this section. Forthe purpose of this section a mortgageor deed of trust shall not be deemed to be other than a first lien uponproperty within the meaning of this section by reason of the existenceof taxes or assessments against real property and appurtenances theretothat are not delinquent, instruments creating or reserving mineral, oilor timber rights, rights of way, joint driveways, sewer rights, rightsin walls or by reason of building restrictions or other like restrictivecovenants, or when such real estate is subject to lease in whole or inpart whereby rents or profits are reserved to the owner or when there isin existence a fixed obligation or lien against the property where anescrow account or indemnification bond is or has been established orobtained sufficient to cover the maximum liability created by suchobligation or lien;
(b) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured by the United States government or any agency or instrumentalitythereof. Any uninsured or nonguaranteed portionshall not exceed 75% of the total amount;
(c) contracts of sale, purchase money mortgages or deeds of trustsecured by property obtained through foreclosure or in settlement orsatisfaction of any indebtedness;
(d) bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered personal and real property, including a leasehold of realestate, under lease, purchase contract or lease purchase contract toany governmental body or instrumentality whose obligations qualify underK.S.A. 40-2a01, 40-2a02 or 40-2a03, and amendments to those sections, or to acorporation whose obligations qualify under K.S.A. 40-2a05,and amendments thereto, if there is adequate rental, after making allowances oflessors' or sellers' obligations and liabilities, if any, under theterms of the lease or contract, to retire the loan as to payment ofprincipal and interest and such rentals arepledged or assigned to the lender;
(e) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured, in accordance with the terms and provisions of an act of thefederal parliament of the Dominion of Canada approved March 18, 1954,cited as the "national housing act, 1954," as heretofore and hereafteramended;
(f) first mortgages or deeds of trust upon improved real property tobe occupied as a personal residence by an officer of the insurer, if themortgage is at an interest rate that is no less than the prevailing rateof the insurer's existing portfolio of mortgage loans. Mortgages or deedsof trust entered into pursuant to this subsection shall be subject to theconditions set forth in subsection (a) of this section relating to mortgagesor deeds of trust generally.
History: L. 1972, ch. 173, § 12; L. 1983, ch. 156, § 3; July 1.
Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a12.Real estate bonds and mortgages.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest with the direction or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in:
(a) Bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered real property and appurtenances thereto within the UnitedStates of America or any insular or territorial possession of the UnitedStates of America, or the Dominion of Canada, and upon leasehold estatesin real property wherein the term of such including any options toextend is not less than 15 years beyond the maturity of theloan as made or extended. At the date of acquisitionthe total indebtedness secured by such lien shall not exceed 80% ofthe market value of the property uponwhich it is a lien. These limitations shall not apply to obligationsdescribed in subsections (b), (c), (d) and (e) of this section. Forthe purpose of this section a mortgageor deed of trust shall not be deemed to be other than a first lien uponproperty within the meaning of this section by reason of the existenceof taxes or assessments against real property and appurtenances theretothat are not delinquent, instruments creating or reserving mineral, oilor timber rights, rights of way, joint driveways, sewer rights, rightsin walls or by reason of building restrictions or other like restrictivecovenants, or when such real estate is subject to lease in whole or inpart whereby rents or profits are reserved to the owner or when there isin existence a fixed obligation or lien against the property where anescrow account or indemnification bond is or has been established orobtained sufficient to cover the maximum liability created by suchobligation or lien;
(b) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured by the United States government or any agency or instrumentalitythereof. Any uninsured or nonguaranteed portionshall not exceed 75% of the total amount;
(c) contracts of sale, purchase money mortgages or deeds of trustsecured by property obtained through foreclosure or in settlement orsatisfaction of any indebtedness;
(d) bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered personal and real property, including a leasehold of realestate, under lease, purchase contract or lease purchase contract toany governmental body or instrumentality whose obligations qualify underK.S.A. 40-2a01, 40-2a02 or 40-2a03, and amendments to those sections, or to acorporation whose obligations qualify under K.S.A. 40-2a05,and amendments thereto, if there is adequate rental, after making allowances oflessors' or sellers' obligations and liabilities, if any, under theterms of the lease or contract, to retire the loan as to payment ofprincipal and interest and such rentals arepledged or assigned to the lender;
(e) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured, in accordance with the terms and provisions of an act of thefederal parliament of the Dominion of Canada approved March 18, 1954,cited as the "national housing act, 1954," as heretofore and hereafteramended;
(f) first mortgages or deeds of trust upon improved real property tobe occupied as a personal residence by an officer of the insurer, if themortgage is at an interest rate that is no less than the prevailing rateof the insurer's existing portfolio of mortgage loans. Mortgages or deedsof trust entered into pursuant to this subsection shall be subject to theconditions set forth in subsection (a) of this section relating to mortgagesor deeds of trust generally.
History: L. 1972, ch. 173, § 12; L. 1983, ch. 156, § 3; July 1.
Article 2a.--INVESTMENTS BY OTHER THAN LIFE INSURANCE COMPANIES
40-2a12.Real estate bonds and mortgages.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest with the direction or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in:
(a) Bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered real property and appurtenances thereto within the UnitedStates of America or any insular or territorial possession of the UnitedStates of America, or the Dominion of Canada, and upon leasehold estatesin real property wherein the term of such including any options toextend is not less than 15 years beyond the maturity of theloan as made or extended. At the date of acquisitionthe total indebtedness secured by such lien shall not exceed 80% ofthe market value of the property uponwhich it is a lien. These limitations shall not apply to obligationsdescribed in subsections (b), (c), (d) and (e) of this section. Forthe purpose of this section a mortgageor deed of trust shall not be deemed to be other than a first lien uponproperty within the meaning of this section by reason of the existenceof taxes or assessments against real property and appurtenances theretothat are not delinquent, instruments creating or reserving mineral, oilor timber rights, rights of way, joint driveways, sewer rights, rightsin walls or by reason of building restrictions or other like restrictivecovenants, or when such real estate is subject to lease in whole or inpart whereby rents or profits are reserved to the owner or when there isin existence a fixed obligation or lien against the property where anescrow account or indemnification bond is or has been established orobtained sufficient to cover the maximum liability created by suchobligation or lien;
(b) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured by the United States government or any agency or instrumentalitythereof. Any uninsured or nonguaranteed portionshall not exceed 75% of the total amount;
(c) contracts of sale, purchase money mortgages or deeds of trustsecured by property obtained through foreclosure or in settlement orsatisfaction of any indebtedness;
(d) bonds, notes, obligations or other evidences of indebtednesssecured by mortgages or deeds of trust which are a first lien uponunencumbered personal and real property, including a leasehold of realestate, under lease, purchase contract or lease purchase contract toany governmental body or instrumentality whose obligations qualify underK.S.A. 40-2a01, 40-2a02 or 40-2a03, and amendments to those sections, or to acorporation whose obligations qualify under K.S.A. 40-2a05,and amendments thereto, if there is adequate rental, after making allowances oflessors' or sellers' obligations and liabilities, if any, under theterms of the lease or contract, to retire the loan as to payment ofprincipal and interest and such rentals arepledged or assigned to the lender;
(e) bonds, notes or other evidences of indebtedness representingloans and advances of credit that have been issued, guaranteed orinsured, in accordance with the terms and provisions of an act of thefederal parliament of the Dominion of Canada approved March 18, 1954,cited as the "national housing act, 1954," as heretofore and hereafteramended;
(f) first mortgages or deeds of trust upon improved real property tobe occupied as a personal residence by an officer of the insurer, if themortgage is at an interest rate that is no less than the prevailing rateof the insurer's existing portfolio of mortgage loans. Mortgages or deedsof trust entered into pursuant to this subsection shall be subject to theconditions set forth in subsection (a) of this section relating to mortgagesor deeds of trust generally.
History: L. 1972, ch. 173, § 12; L. 1983, ch. 156, § 3; July 1.
