N.Y. ISC Law § 6403 — New York Code / Act ISC / Article 64 / Section 6403
Management and powers of title insurance corporation
Status: in_force

§ 6403. Management and powers of title insurance corporation. (a) The\nbusiness and affairs of every title insurance corporation shall be\nmanaged under the direction of its board of directors.\n  (b) Every title insurance corporation shall, subject to the exceptions\nand restrictions contained in this chapter, have power to do, in\naddition to the powers granted by the business corporation law, only the\nfollowing kinds or any of the kinds of business, of which those\nspecified in paragraphs one and two hereof shall be deemed doing an\ninsurance business:\n  (1) To make and to guarantee the correctness of searches for all\ninstruments affecting titles to real property, chattels real, and\ncooperative units and proprietary leases, and for all liens or charges\naffecting the same.\n  (2) To issue title insurance policies.\n  (3) To examine titles to real property and chattels real and to\nprocure and furnish information in relation thereto and to personal\nproperty used in connection therewith.\n  (4) To invest in, purchase and sell mortgages upon improved and\nunencumbered real property appraised for at least fifty per centum more\nthan the amount loaned thereon or obligations secured by such mortgages\nor senior participations or interests therein, without guaranteeing the\nperformance of any contract in respect thereto or the guaranteeing of\npayment of taxes, penalties, foreclosure costs or other expenses with\nrespect to the same. "Senior participation", in this section, means all\nthat portion or portions of the obligation secured by a first mortgage\nwhich has legal priority over all other portion or portions of such\nobligation, known as junior participation.\n  (5) To invest in or acquire for resale, (i) obligations secured by a\nmortgage (including any part of an issue of such obligations) which are\ninsured or committed to be insured by the Federal Housing Administrator,\nor (ii) debentures lawfully issued by the Federal Housing Administrator.\n  (6) To act as agent in fact for investors in, and the holders of,\nmortgages or obligations mentioned in paragraphs four and five hereof,\nand interests therein, in the purchase, sale and servicing thereof; to\nact as agent in fact for investors in supervising and inspecting land\nand buildings for the purpose of loans to be made thereon, and in\nrecommending, without any guaranty or similar undertaking as to the\namounts of such loans and amounts to be advanced thereon, but not to\nengage in the business of making real estate appraisals.\n  (c) No title insurance corporation doing business in this state shall\nexpose itself to any loss on any one risk in an amount exceeding the sum\nof its capital, surplus, statutory premium and any voluntary reserves,\nall as shown in its most recent quarterly or annual statement filed with\nthe superintendent. Any risk or portion thereof which shall have been\nreinsured with an assuming insurer authorized to do such business in\nthis state shall be deducted in determining the limitation of risk\nprescribed in this subsection.  Credit to the ceding insurer for\nreinsurance with an unauthorized insurer shall be allowed to the extent\npermitted by a regulation of the superintendent.\n