California Insurance Code

§ 1194.82

INS § 1194.82 Effective Jan 1, 2008Div. 1 · Part 2 · Ch. 2 · Art. 4

Statute text

(a)An insurer may invest in notes or bonds secured by second mortgages or other second liens, including all inclusive or wraparound mortgages or liens, upon real property encumbered only by a first mortgage or lien which meets the requirements set forth in Section 1194.81, subject to either of the following conditions:

(1)The insurer also owns the note or bond secured by the prior first mortgage or lien and the aggregate value of both loans does not exceed the loan to market value ratio requirements of Section 1194.81.

(2)The note or bond is secured by an “all-inclusive” or “wraparound” lien or mortgage which conforms to the requirements specified in subdivision (b), provided that the aggregate value of the resulting loan does not exceed the loan to market value ratio requirements of Section 1194.81.

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Legislative history

Amended by Stats. 2007, Ch. 130, Sec. 183. Effective January 1, 2008.