Texas Insurance Code 425.231 – Authorized Investments: Real Property Acquired Under Certain Circumstances
(a) Subject to this section, an insurer may secure, hold, and convey the following real property:
(1) real property acquired in good faith as security for a loan previously contracted or for money due;
(2) real property conveyed to the insurer to satisfy a debt previously contracted in the course of the insurer’s dealings; and
(3) real property purchased at a sale under a judgment, court decree, or mortgage or other lien held by the insurer.
(b) An insurer shall sell and dispose of all property described by Subsection (a) that is not necessary for the insurer’s accommodation in the convenient transaction of the insurer’s business, other than an interest in minerals or royalties reserved on the sale of land acquired under Subsection (a) or an interest in producing royalties or producing overriding royalties otherwise acquired, not later than the fifth anniversary of:
(1) the date the insurer acquires title to the property; or
(2) the date the property ceases to be necessary for the accommodation of the insurer’s business.
Terms Used In Texas Insurance Code 425.231
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(c) An insurer may hold property acquired under Subsection (a) for a period longer than that specified by Subsection (b) if the insurer obtains a certificate from the commissioner stating that the insurer’s interests will suffer materially by the forced sale of the property. The commissioner shall state in the certificate the amount of time by which the period for sale is extended under this subsection.