12420-12428
INSURANCE CODE
SECTION 12420-12428
12420. The definitions set forth in this article shall govern the construction of the terms used in this chapter but shall not affect any other provisions of this code. 12421. Unless the context indicates a different construction the following definitions and restrictions govern the interpretation of the terms specified: (a) "Note" includes "bond." (b) "Real estate" includes real estate with the improvements thereon, including improvements in process of construction under a building loan. (c) "Building loan" means a loan made for the purpose of providing funds for the construction of improvements upon real estate. (d) "Public bond" includes only bonds issued pursuant to statutory authority by the officials of a county, city, town, municipality or district where each bond constitutes a lien upon specified land described therein or represents a special assessment theretofore levied which is a lien upon specified land described in the bond. (e) "Assessment" includes only special assessments levied pursuant to charter or statutory authority by a county, city, municipality or district. (f) "Security" means a note evidencing a debt secured by a mortgage constituting a lien or charge on real estate. 12422. "Authorized real estate security" means security which complies with all the following conditions: (a) The securing mortgage is a first mortgage upon the title in fee to real estate, such real estate being improved or productive or a building being in process of construction thereon by means of a building loan. (b) The principal loaned on such security, or if a number of securities are secured by a single mortgage, the aggregate principal so secured, plus the amount of the lien of any public bonds, or assessments upon the property or properties loaned upon, does not exceed 66 2/3 per cent of the fair market value of the real estate. 12423. "First mortgage" means a mortgage constituting a lien or charge on the title in fee to real estate, such lien or charge being prior and superior to all other liens or charges on the real estate except: (a) The lien of any public bond, assessment or tax, when no installment, call or payment of or under such bond, assessment or tax is delinquent. (b) Outstanding mineral, oil or timber rights, rights of way, easements or rights of wall or support, sewer rights, building restrictions or other restrictions or covenants or conditions or regulations of use, or outstanding leases upon such real property under which rents or profits are reserved to the owner thereof. For the purposes of this section, delinquent taxes funded on any deferred payment plan shall be deemed delinquent. 12424. "Mortgage participation certificate" means an instrument, issued by a mortgage insurer, which constitutes an assignment of or which evidences the ownership by the assignee, of either an undivided share or interest, legal or equitable or both, or the right to participate to a specified extent in a group of securities in a mortgage participation trust. 12425. Group of securities means one or more securities, together with the proceeds thereof, segregated from the assets and securities of a mortgage insurer and assigned in a mortgage participation trust. 12426. (a) "Group value" means the aggregate value of the following assets held by a trustee in a single mortgage participation trust: (1) Securities. (2) Real estate acquired through foreclosure of defaulted securities, or through conveyances made in lieu of such foreclosure. (3) Cash, other than cash received as interest on securities. (b) For the purpose of determining such group value: (1) The securities in such trust are valued at the unpaid principal thereof. (2) Real estate acquired by foreclosure of any defaulted security, or by conveyance in lieu of such foreclosure, is valued at the unpaid principal of such defaulted security as of the date of such conveyance or of the date of the sale under which such property is acquired by the trustee. 12427. A "mortgage participation trust" means a trust established by the assignment and transfer to a trustee of a group of securities the payment of all of which securities is insured, either singly or as a group, by a policy or policies of mortgage insurance, in which undivided shares or interests or rights to participate may be or have been assigned by means of mortgage participation certificates. 12428. The term "trustee" means a trust company as defined in the Bank Act and includes a national bank having a trust department and doing business within this State.