2023 New York Laws › ISC - Insurance › Article 64 - Title Insurance Corporations › 6403 - Management and Powers of Title Insurance Corporation.

§  6403. Management and powers of title insurance corporation. (a) The
business and affairs of  every  title  insurance  corporation  shall  be
managed under the direction of its board of directors.
(b) Every title insurance corporation shall, subject to the exceptions
and  restrictions  contained  in  this  chapter,  have  power  to do, in
addition to the powers granted by the business corporation law, only the
following kinds or  any  of  the  kinds  of  business,  of  which  those
specified  in  paragraphs  one  and  two hereof shall be deemed doing an
insurance business:
(1) To make and to guarantee  the  correctness  of  searches  for  all
instruments  affecting  titles  to  real  property,  chattels  real, and
cooperative units and proprietary leases, and for all liens  or  charges
affecting the same.
(2) To issue title insurance policies.
(3)  To  examine  titles  to  real  property  and chattels real and to
procure and furnish information in  relation  thereto  and  to  personal
property used in connection therewith.
(4)  To  invest  in,  purchase  and  sell  mortgages upon improved and
unencumbered real property appraised for at least fifty per centum  more
than  the amount loaned thereon or obligations secured by such mortgages
or senior participations or interests therein, without guaranteeing  the
performance  of  any  contract in respect thereto or the guaranteeing of
payment of taxes, penalties, foreclosure costs or  other  expenses  with
respect  to the same. "Senior participation", in this section, means all
that portion or portions of the obligation secured by a  first  mortgage
which  has  legal  priority  over  all other portion or portions of such
obligation, known as junior participation.
(5) To invest in or acquire for resale, (i) obligations secured  by  a
mortgage  (including any part of an issue of such obligations) which are
insured or committed to be insured by the Federal Housing Administrator,
or (ii) debentures lawfully issued by the Federal Housing Administrator.
(6) To act as agent in fact for investors  in,  and  the  holders  of,
mortgages  or  obligations mentioned in paragraphs four and five hereof,
and interests therein, in the purchase, sale and servicing  thereof;  to
act  as  agent  in fact for investors in supervising and inspecting land
and buildings for the purpose of  loans  to  be  made  thereon,  and  in
recommending,  without  any  guaranty  or  similar undertaking as to the
amounts of such loans and amounts to be advanced  thereon,  but  not  to
engage in the business of making real estate appraisals.
(c)  No title insurance corporation doing business in this state shall
expose itself to any loss on any one risk in an amount exceeding the sum
of its capital, surplus, statutory premium and any  voluntary  reserves,
all as shown in its most recent quarterly or annual statement filed with
the  superintendent.  Any  risk or portion thereof which shall have been
reinsured with an assuming insurer authorized to  do  such  business  in
this  state  shall  be  deducted  in  determining the limitation of risk
prescribed in this  subsection.    Credit  to  the  ceding  insurer  for
reinsurance  with an unauthorized insurer shall be allowed to the extent
permitted by a regulation of the superintendent.