2000 Legislation
Print Friendly

HOUSE BILL NO. 587 – Mortgage guaranty insurance, amount

HOUSE BILL NO. 587

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0587...........................................................by BUSINESS
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
indebtedness.
                                                                        
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
      NAYS--Hawkins, Whitworth
      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
         Effective: 04/14/00

Bill Text


 H0587
                                                                        
                                                                        
  ||||              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
                                                                        
                                           2
                                                                        
  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
  4        following:
  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 / Fiscal Impact


     
                           
                 STATEMENT OF PURPOSE
                       RS 09921 
     
     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. 
     
     
     
     
     
     
     
     
                    FISCAL IMPACT
     
     None. 
     
     
     
     
     Contact: Dale G. Higer 
             Stoel Rives LLP
             (208) 387-4288 
     
                                                  STATEMENT OF PURPOSE/FISCAL NOTE                                 H 587