NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 624

HOUSE BILL 632

 

 

AN ACT AMENDING SECTIONS 58-72(17) AND 58-79.1 OF THE rFNERAL STATUTES SO AS TO DEFINE THE BUSINESS OF MORTAGE GUEotF INSURANCE; TO AUTHORIZE MORT TACF GUARANTY INSURANCE COMPANIES TO ACQUIRE REAL ESTATE N ADMITTED ASSET; TO CLARIFY THE METHOD OF VALUATION OF ACQUIRED REAL ESTATE, AND TO PROvidE FOR LIMITATION ON THE AMOUNT OF REAL ESTATE ACQUIRED BY MORTGAGE GUARANTY INSURANCE COMPANIES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subparagraph (17) of Section 58-72 of the General Statutes is hereby amended by striking the period (.) at the end of said paragraph and by adding after the word "him" the following language: including without limiting the foregoing, mortgage guaranty insurance which is insurance against financial loss by reason of the nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond, or other evidence of indebtedness secured by a security interest, mortgage, deed of trust, or other instrument constituting a lien or charge on real estate, or on such personal property as the Commissioner may from time to time approve."

Sec. 2.  Subparagraph c. of subparagraph (8) of Section (c) of General Statute 58-79.1 is hereby amended by striking out the period (.) immediately after the word "business" at the end of said paragraph and adding the following: "or in connection with the default in payment of a loan insured under any mortgage guaranty policy of credit insurance."

Sec. 3.  Subparagraph (3) of subsection (h) of General Statute 58-79.1 is hereby deleted in its entirety and in lieu thereof said paragraph is rewritten to read as follows: "Real estate acquired by foreclosure or by deed in lieu thereof, or in connection with the default in payment of a loan insured under any mortgage guaranty policy of credit insurance, in the absence of a recent appraisal deemed by the Commissioner to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan at the date of such foreclosure or deed, together with any taxes and expenses paid or incurred by such insurer at such time in connection with such acquisition (but not including any uncollected interest on such loan) ; and the cost of additions or improvements thereafter made by such insurer and any amount or amounts thereafter paid by such insurer on any assessments levied for improvements in connection with the property; provided, that the value of any property conveyed to any mortgage guaranty insurance company in satisfaction of debts or guarantees previously contracted in the course of its dealings, or purchased at sales upon judgments, decrees or mortgages obtained or made for such debts or guaranties, or acquired upon tender of the named insured, whether such property be held by it directly or indirectly, together with the value of all such real property then held by it shall not exceed thirty per cent (30%) of its total admitted assets; provided, however, that the Commissioner of Insurance shall have authority from time to time by regulation to fix a lesser percentage of admitted assets than provided by this Statute, and when so fixed, the property so held by such company, directly or indirectly, shall not exceed such percentage of its admitted assets."

Sec. 4.  Subparagraph (e) of General Statutes 58-79.1 is hereby amended by inserting immediately after the word "assets" and before the period in line 13 thereof the following language: "Except as more specifically provided in this Section."

Sec. 5.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 6.  This Act shall be effective from and after the date of its ratification.

In the General Assembly read three times and ratified, this the 30th day of May, 1967.