State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-7-179

§ 58‑7‑179. Mortgage loans.

(a)        An insurer mayinvest any of its funds in bonds, notes, or other evidences of indebtednessthat are secured by first mortgages or deeds of trust upon improved realproperty located in the United States, any U.S. territory, or Canada, or thatare secured by first mortgages or deeds of trust upon leasehold estates havingan unexpired term of not less than 30 years, inclusive of the terms that may beprovided by enforceable options of renewal, as long as the loan matures at least20 years before the expiration of such lease, in improved real property locatedin the United States, any U.S. territory, or Canada. In all cases the securityfor the loan must be a first lien upon the real property, and there must not beany condition or right of reentry or forfeiture not insured against underwhich, in the case of real property other than leaseholds, the lien can be cutoff or subordinated or otherwise disturbed, or under which, in the case ofleaseholds, the insurer cannot continue the lease in force for the duration ofthe loan. Nothing herein prohibits any investment because of the existence ofany prior lien for ground rents, taxes, assessments, or other similar chargesnot yet delinquent. This section does not prohibit investment in mortgages orsimilar obligations when made under G.S. 58‑7‑180.

(b)        "Improved realproperty" means all farmlands used for tillage, crops, or pasture;timberlands; and all real property on which permanent improvements, andimprovements under construction or in process of construction, suitable forresidential, institutional, commercial, or industrial use are situated.

(c)        No such mortgageloan or loans made or acquired by an insurer on any one property shall, at thetime of investment by the insurer, exceed the larger of the following amounts,as applicable:

(1)        Ninety‑fivepercent (95%) of the value of the real property or leasehold securing the realproperty in the case of a mortgage on a dwelling primarily intended foroccupancy by not more than four families if they insure down to seventy‑fivepercent (75%) with a licensed mortgage insurance company, or seventy‑fivepercent (75%) of the value in the case of other real estate mortgages;

(2)        The amount of anyinsurance or guaranty of the loan by the United States or by an agency orinstrumentality thereof; or

(3)        The percentage‑of‑valuelimit on the amount of the loan applicable under subdivision (1) of thissubsection, plus the amount by which the excess of the loan over the percentage‑of‑valuelimit is insured or guaranteed by the United States or by any agency orinstrumentality thereof.

(d)        In the case of apurchase money mortgage given to secure the purchase price of real estate soldby the insurer, the amount lent or invested shall not exceed the unpaid part ofthe purchase price.

(e)        Nothing in thissection prohibits an insurer from renewing or extending a loan for the originalor a lesser amount where a shrinkage in value of the real estate securing theloan would cause its value to be less than the amount otherwise required inrelation to the amount of the loan. (1991, c. 681, s. 29; 2003‑212, s. 11.)

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-7-179

§ 58‑7‑179. Mortgage loans.

(a)        An insurer mayinvest any of its funds in bonds, notes, or other evidences of indebtednessthat are secured by first mortgages or deeds of trust upon improved realproperty located in the United States, any U.S. territory, or Canada, or thatare secured by first mortgages or deeds of trust upon leasehold estates havingan unexpired term of not less than 30 years, inclusive of the terms that may beprovided by enforceable options of renewal, as long as the loan matures at least20 years before the expiration of such lease, in improved real property locatedin the United States, any U.S. territory, or Canada. In all cases the securityfor the loan must be a first lien upon the real property, and there must not beany condition or right of reentry or forfeiture not insured against underwhich, in the case of real property other than leaseholds, the lien can be cutoff or subordinated or otherwise disturbed, or under which, in the case ofleaseholds, the insurer cannot continue the lease in force for the duration ofthe loan. Nothing herein prohibits any investment because of the existence ofany prior lien for ground rents, taxes, assessments, or other similar chargesnot yet delinquent. This section does not prohibit investment in mortgages orsimilar obligations when made under G.S. 58‑7‑180.

(b)        "Improved realproperty" means all farmlands used for tillage, crops, or pasture;timberlands; and all real property on which permanent improvements, andimprovements under construction or in process of construction, suitable forresidential, institutional, commercial, or industrial use are situated.

(c)        No such mortgageloan or loans made or acquired by an insurer on any one property shall, at thetime of investment by the insurer, exceed the larger of the following amounts,as applicable:

(1)        Ninety‑fivepercent (95%) of the value of the real property or leasehold securing the realproperty in the case of a mortgage on a dwelling primarily intended foroccupancy by not more than four families if they insure down to seventy‑fivepercent (75%) with a licensed mortgage insurance company, or seventy‑fivepercent (75%) of the value in the case of other real estate mortgages;

(2)        The amount of anyinsurance or guaranty of the loan by the United States or by an agency orinstrumentality thereof; or

(3)        The percentage‑of‑valuelimit on the amount of the loan applicable under subdivision (1) of thissubsection, plus the amount by which the excess of the loan over the percentage‑of‑valuelimit is insured or guaranteed by the United States or by any agency orinstrumentality thereof.

(d)        In the case of apurchase money mortgage given to secure the purchase price of real estate soldby the insurer, the amount lent or invested shall not exceed the unpaid part ofthe purchase price.

(e)        Nothing in thissection prohibits an insurer from renewing or extending a loan for the originalor a lesser amount where a shrinkage in value of the real estate securing theloan would cause its value to be less than the amount otherwise required inrelation to the amount of the loan. (1991, c. 681, s. 29; 2003‑212, s. 11.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-7-179

§ 58‑7‑179. Mortgage loans.

(a)        An insurer mayinvest any of its funds in bonds, notes, or other evidences of indebtednessthat are secured by first mortgages or deeds of trust upon improved realproperty located in the United States, any U.S. territory, or Canada, or thatare secured by first mortgages or deeds of trust upon leasehold estates havingan unexpired term of not less than 30 years, inclusive of the terms that may beprovided by enforceable options of renewal, as long as the loan matures at least20 years before the expiration of such lease, in improved real property locatedin the United States, any U.S. territory, or Canada. In all cases the securityfor the loan must be a first lien upon the real property, and there must not beany condition or right of reentry or forfeiture not insured against underwhich, in the case of real property other than leaseholds, the lien can be cutoff or subordinated or otherwise disturbed, or under which, in the case ofleaseholds, the insurer cannot continue the lease in force for the duration ofthe loan. Nothing herein prohibits any investment because of the existence ofany prior lien for ground rents, taxes, assessments, or other similar chargesnot yet delinquent. This section does not prohibit investment in mortgages orsimilar obligations when made under G.S. 58‑7‑180.

(b)        "Improved realproperty" means all farmlands used for tillage, crops, or pasture;timberlands; and all real property on which permanent improvements, andimprovements under construction or in process of construction, suitable forresidential, institutional, commercial, or industrial use are situated.

(c)        No such mortgageloan or loans made or acquired by an insurer on any one property shall, at thetime of investment by the insurer, exceed the larger of the following amounts,as applicable:

(1)        Ninety‑fivepercent (95%) of the value of the real property or leasehold securing the realproperty in the case of a mortgage on a dwelling primarily intended foroccupancy by not more than four families if they insure down to seventy‑fivepercent (75%) with a licensed mortgage insurance company, or seventy‑fivepercent (75%) of the value in the case of other real estate mortgages;

(2)        The amount of anyinsurance or guaranty of the loan by the United States or by an agency orinstrumentality thereof; or

(3)        The percentage‑of‑valuelimit on the amount of the loan applicable under subdivision (1) of thissubsection, plus the amount by which the excess of the loan over the percentage‑of‑valuelimit is insured or guaranteed by the United States or by any agency orinstrumentality thereof.

(d)        In the case of apurchase money mortgage given to secure the purchase price of real estate soldby the insurer, the amount lent or invested shall not exceed the unpaid part ofthe purchase price.

(e)        Nothing in thissection prohibits an insurer from renewing or extending a loan for the originalor a lesser amount where a shrinkage in value of the real estate securing theloan would cause its value to be less than the amount otherwise required inrelation to the amount of the loan. (1991, c. 681, s. 29; 2003‑212, s. 11.)