CHAPTER 411-A REGULATION OF INVESTMENTS OF LIFE INSURANCE COMPANIES
Section 411-A:21
411-A:21 Real Estate Mortgages. –
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. section 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 RSA 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.