New Hampshire Revised Statutes 411-A:21 – Real Estate Mortgages
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I. An insurer may invest in bonds or notes secured by mortgages or deeds of trust representing first liens upon unencumbered improved real property located in the United States or Canada, including leasehold estates having an unexpired term of not less than 21 years, inclusive of the term or terms which may be provided by enforceable options of renewal, subject to the following conditions:
(a) The amount loaned or the aggregate amount of bonds issued upon the security of a mortgage or deed of trust shall not at the time of the investment exceed 75 percent of the fair market value of the real estate, as such value has been determined by a qualified appraiser. An appraiser shall be presumed to be qualified if he or she is a member in good standing of the American Institute of Appraisers or any other similar professional organization.
(b) In applying the limitation under subparagraph (a), there may be excluded from the amount invested that portion of the investment which is guaranteed by the secretary of veterans’ affairs pursuant to the Servicemen’s Readjustment Act of 1944 (38 U.S.C. § 1801 et seq.), as amended, or insured by the United States secretary of housing and urban development or other United States or Canadian government agency.
(c) Insurance not less comprehensive than fire and extended coverage must be carried on the improvements on the real estate, in an amount not less than 75 percent of the insurable value of the improvements or the unpaid balance of the investment, whichever is the lesser amount, and the policy or policies evidencing such insurance shall be endorsed to show the interest of the lender.
(d) No mortgage loan upon a leasehold made or acquired by an insurer pursuant to this section shall permit amortization over a period exceeding
4/5 of the lease term remaining at the time of the loan.
II. For the purpose of this section real estate shall not be deemed to be encumbered by reason of the existence of taxes or assessments which are not delinquent, instruments creating or reserving mineral, oil or timber rights, rights-of-way, joint driveways, sewer rights, rights in walls, or by reason of building restrictions or other restrictive covenants, or when such real estate is subject to lease in whole or in part whereby rents or profits are reserved to the owner.
III. In addition to the foregoing and supplemental to N.H. Rev. Stat. § 411-A:30 an insurer may, to an aggregate amount not in excess of 5 percent of the assets of such insurer, make and hold loans upon real property, including leasehold estates therein, in any state of the United States, or in the District of Columbia or Puerto Rico, or in any province of the Dominion of Canada, notwithstanding the fact that such loans and the mortgages securing the same do not comply with the provisions of this section.
(a) The amount loaned or the aggregate amount of bonds issued upon the security of a mortgage or deed of trust shall not at the time of the investment exceed 75 percent of the fair market value of the real estate, as such value has been determined by a qualified appraiser. An appraiser shall be presumed to be qualified if he or she is a member in good standing of the American Institute of Appraisers or any other similar professional organization.
Terms Used In New Hampshire Revised Statutes 411-A:21
- Amortization: Paying off a loan by regular installments.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- real estate: shall include lands, tenements, and hereditaments, and all rights thereto and interests therein. See New Hampshire Revised Statutes 21:21
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
- United States: shall include said district and territories. See New Hampshire Revised Statutes 21:4
(b) In applying the limitation under subparagraph (a), there may be excluded from the amount invested that portion of the investment which is guaranteed by the secretary of veterans’ affairs pursuant to the Servicemen’s Readjustment Act of 1944 (38 U.S.C. § 1801 et seq.), as amended, or insured by the United States secretary of housing and urban development or other United States or Canadian government agency.
(c) Insurance not less comprehensive than fire and extended coverage must be carried on the improvements on the real estate, in an amount not less than 75 percent of the insurable value of the improvements or the unpaid balance of the investment, whichever is the lesser amount, and the policy or policies evidencing such insurance shall be endorsed to show the interest of the lender.
(d) No mortgage loan upon a leasehold made or acquired by an insurer pursuant to this section shall permit amortization over a period exceeding
4/5 of the lease term remaining at the time of the loan.
II. For the purpose of this section real estate shall not be deemed to be encumbered by reason of the existence of taxes or assessments which are not delinquent, instruments creating or reserving mineral, oil or timber rights, rights-of-way, joint driveways, sewer rights, rights in walls, or by reason of building restrictions or other restrictive covenants, or when such real estate is subject to lease in whole or in part whereby rents or profits are reserved to the owner.
III. In addition to the foregoing and supplemental to N.H. Rev. Stat. § 411-A:30 an insurer may, to an aggregate amount not in excess of 5 percent of the assets of such insurer, make and hold loans upon real property, including leasehold estates therein, in any state of the United States, or in the District of Columbia or Puerto Rico, or in any province of the Dominion of Canada, notwithstanding the fact that such loans and the mortgages securing the same do not comply with the provisions of this section.