NY Ins L § 6406 (2021)
2021 New York Laws ISC - Insurance Article 64 - Title Insurance Corporations 6406 - Investments; Exception.

§  6406. Investments; exception. (a) Every title insurance corporation organized and doing business under this article shall  invest  and  keep invested an amount at least equal to its required minimum capital in the types  of investments specified in section one thousand four hundred two of this chapter, except that it shall invest and keep invested at  least thirty-five percent of its minimum capital in those types of investments specified in paragraphs one and two of subsection (b) of such section.  (b)  Every  title  insurance  corporation  organized and doing a title insurance business under this article shall confine  its  investment  of all  of  its funds, other than those specified in subsection (a) hereof, to investments permitted by paragraph two of subsection (a)  of  section one thousand four hundred three of this chapter except as follows:  (1) No loan secured by mortgage on any one piece or parcel of property (excluding  any  part  guaranteed  under title three of the Servicemen's Readjustment Act of 1944 (38 U.S.C.  §  1801))  shall  at  the  time  of investment  exceed  (i)  three-fourths of the value of the real property securing the same if (I) such real property is primarily improved  by  a single family residence, (II) the aggregate principal amount of the loan or  loans  secured by such real property does not exceed thirty thousand dollars,  and  (III)  the  evidences   of   indebtedness   provide   for amortization  of  principal over a period of not more than thirty years, or (ii) two-thirds of the value of the real property securing  the  same in  all  other cases, as shown by the appraisal of one or more competent and experienced appraisers.  (2) Any such corporation may invest in loans secured by  mortgages  on real  property  guaranteed  as  to  principal  or interest by the United States.  (3) No title insurance corporation shall at any time have invested  in bonds,  notes  or  other  evidences  of indebtedness secured by deeds of trust or real estate mortgages, as specified in  this  paragraph  except bonds  or  notes secured by mortgage or trust deed guaranteed or insured by the federal housing administration under an act of  congress  of  the United  States of June 27, 1934, entitled the "National Housing Act,"(12 U.S.C. § 1701). Notwithstanding the provisions of clause (I) of item (v) of subparagraph (A) of paragraph four of subsection (a) of  section  one thousand  four  hundred  four of this chapter, the aggregate investments held by a title insurance corporation of the  types  described  in  such subparagraph  and  in  purchase  money  mortgages received by it in part payment of the consideration for the sale or exchange of  real  property owned  by it, shall not exceed seventy percent of its admitted assets as shown by its last statement on file with the superintendent.  (4) No title insurance corporation shall invest in or  lend  upon  the security of any one parcel of property an amount exceeding seven percent of its total admitted assets, except that such corporation may invest in or  lend  upon  an  obligation  or  obligations secured by a mortgage or mortgages on property guaranteed as to  principal  or  interest  by  the United  States,  or guaranteed or insured under the National Housing Act (12 U.S.C. § 1701), an amount not exceeding twenty-five percent  of  its total  admitted  assets,  if at the time of the making of the commitment for such investment or loan such corporation shall have entered into  an agreement  in  writing with a mortgagee approved under the provisions of the National Housing Act, for the sale of such investment or loan for an amount in cash not less than the full amount of such investment or loan.  (5) Notwithstanding the provisions of paragraph  eight  of  subsection (a)  of section one thousand four hundred four of this chapter, no title insurance corporation shall invest in, or otherwise acquire or loan upon in any one institution's outstanding equity interests  an  amount  which exceeds  two  percent  of  the  admitted  assets of such title insurance  corporation  as  shown  by  its  last  statement  on   file   with   the superintendent.   The  aggregate  cost  of  all  investments  in  equity interests then held by any title insurance corporation pursuant to  this paragraph, paragraph six hereof, section one thousand four hundred three and  paragraph  eight  of  subsection  (a)  of section one thousand four hundred four of this chapter shall not exceed the lesser of  twenty-five percent  of  the  insurer's  total  admitted  assets  or one-half of the insurer's surplus to policyholders as shown by  its  last  statement  on file with the superintendent.  (6)  Notwithstanding  the  provisions of paragraph eight of subsection (a) of section one thousand  four  hundred  four  of  this  chapter  and paragraph  five  hereof, a title insurance corporation may invest in the shares of other insurance corporations and in the shares and obligations of any corporation which is engaged exclusively in a  kind  of  business properly  incidental  to  the insurance business of such title insurance corporation, amounts which do not in total exceed  ten  percent  of  its total  admitted  assets  as shown by its last statement on file with the superintendent.  (7) No title insurance corporation shall hold  a  direct  or  indirect ownership  interest  in  a  risk  retention group, as defined in article fifty-nine of this chapter, other than in a risk retention group all  of whose members are insurance companies.