2023 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.