Print Friendly HOUSE BILL NO. 587 – Mortgage guaranty insurance, amount
HOUSE BILL NO. 587
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MORTGAGE GUARANTY INSURANCE - Amends existing law to revise the definition
of "authorized real property security" to provide that mortgage guaranty
insurance may insure indebtedness in an amount up to 100% of the fair
market value of the real property which is the security for the
02/16 House intro - 1st rdg - to printing
02/17 Rpt prt - to Bus
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 66-0-4
AYES -- Barraclough(Barraclough), Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kellogg, Kendell, Kunz, Lake, Linford, Loertscher,
Mader, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
Stone, Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Alltus, Barrett, Kempton, Marley
Floor Sponsor - Gagner
Title apvd - to Senate
03/08 Senate intro - 1st rdg - to Com/HuRes
03/15 Rpt out - rec d/p - to 2nd rdg
03/16 2nd rdg - to 3rd rdg
03/30 3rd rdg - PASSED - 30-2-3
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Ingram,
Ipsen, Keough, King-Barrutia, Lee, Noh, Parry, Richardson, Riggs,
Risch, Sandy, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
Absent and excused--Danielson, McLaughlin, Schroeder
Floor Sponsor - Andreason
Title apvd - to House
03/31 To enrol
04/03 Rpt enrol - Sp signed
04/04 Pres signed - to Governor
04/14 Governor signed
Session Law Chapter 378
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 587
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO MORTGAGE GUARANTY INSURANCE; AMENDING SECTION 41-2651, IDAHO CODE,
3 TO REVISE THE DEFINITION OF "AUTHORIZED REAL PROPERTY SECURITY" TO PROVIDE
4 THAT MORTGAGE GUARANTY INSURANCE MAY INSURE INDEBTEDNESS IN AN AMOUNT UP
5 TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF THE REAL PROPERTY WHICH
6 IS THE SECURITY FOR THE INDEBTEDNESS AND TO MAKE TECHNICAL CORRECTIONS;
7 AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 41-2651, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 41-2651. DEFINITIONS. In this chapter unless context or subject matter
12 otherwise requires:
13 (1) "Mortgage guaranty insurance" means:
14 (a) Insurance against financial loss by reason of nonpayment of princi-
15 pal, interest and other sums agreed to be paid under the terms of any note
16 or bond or other evidence of indebtedness secured by a mortgage, deed of
17 trust, or other instrument constituting a lien or charge on real property,
18 provided the improvement on such real property is a residential building
19 or buildings designed for occupancy by not more than four (4) families, or
20 a condominium unit.
21 (b) Insurance against financial loss by reason of nonpayment of princi-
22 pal, interest and other sums agreed to be paid under the terms of any note
23 or bond or other evidence of indebtedness secured by a mortgage, deed of
24 trust, or other instrument constituting a lien or charge on real property,
25 provided the improvement on such real property is a building or buildings
26 designed for occupancy by five (5) or more families or designed to be
27 occupied for industrial or commercial purposes.
28 (c) Insurance against financial loss by reason of nonpayment of rent and
29 other sums agreed to be paid under the terms of a written lease for the
30 possession, use or occupancy of real property, provided the improvement on
31 such real property is a building or buildings designed to be occupied for
32 industrial or commercial purposes.
33 (2) "Authorized real property security" for the purposes of paragraphs
34 (a) and (b) of subsection (1) of this section means an amortized note, bond or
35 other evidence of indebtedness, not exceeding ninety-seven per cent one hun-
36 dred percent ( 97100%) of the fair market value of the real estate, secured by
37 a mortgage, deed of trust, or other instrument constituting a first lien or
38 charge on real property; provided:
39 (a) The real property loan secured in such manner is one which a bank,
40 savings and loan association, or an insurance company, which is supervised
41 and regulated by a department of this state or an agency of the federal
42 government, is authorized to make.
43 (b) The improvement on such real property is a building or buildings
1 designed for occupancy as specified by paragraphs (a) and (b) of subsec-
2 tion (1) of this section.
3 (c) The lien on such real property may be subject and subordinate to the
5 (i) The lien of any public bond, assessment, or tax, when no
6 instalment installment, call or payment of or under such bond,
7 assessment or tax is delinquent.
8 (ii) Outstanding mineral, oil or timber rights, rights-of-way, ease-
9 ments or rights-of-way of support, sewer rights, building restric-
10 tions or other restrictions or covenants, conditions or regulations
11 of use, or outstanding leases upon such real property under which
12 rents or profits are reserved to the owner thereof.
13 (3) "Contingency reserve" means an additional premium reserve established
14 for the protection of policyholders against the effect of adverse economic
15 cycles or losses.
16 (4) "Policyholders' surplus" means the aggregate of paid-in capital
17 stock, surplus and contingency reserve.
18 SECTION 2. An emergency existing therefor, which emergency is hereby
19 declared to exist, this act shall be in full force and effect on and after its
20 passage and approval.
STATEMENT OF PURPOSE
This bill would allow mortgage guaranty insurance companies to insure
indebtedness in an amount up to one hundred percent (100%) of the fair market
value of the real property which is the security for the indebtedness.
Contact: Dale G. Higer
Stoel Rives LLP
STATEMENT OF PURPOSE/FISCAL NOTE H 587