{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1622","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1622","heading":"Mortgages on real estate","body":"A. An insurer may invest any of its funds in bonds, notes or\n\nother evidences of indebtedness which are secured by first mortgages\n\nor deeds of trust upon improved, unencumbered real property located\n\nin the United States, or which are secured by first mortgages or\n\ndeeds of trust upon leasehold estates having an expired term of not\n\nless than twenty-one (21) years, inclusive of the term which may be\n\nprovided by an enforceable option of renewal, in improved,\n\nunencumbered real property located in the United States.\n\nB. Real property shall not be deemed to be encumbered within\n\nthe meaning of this section by reason of the existence of\n\ninstruments reserving mineral, oil or timber rights, rights-of-way,\n\nsewer rights, rights in walls, nor by reason of any liens for taxes\n\nor assessments not delinquent, nor by reason of building\n\nrestrictions or other restrictive covenants, nor when such real\n\nproperty is subject to lease under which rents or profits are\n\nreserved to the owner, if in any event the security for such loan is\n\na first lien upon such real property and if there is no condition or\n\nright of reentry or forfeiture under which, in the case of real\n\nproperty other than leaseholds, such lien can be cut off,\n\nsubordinated, or otherwise disturbed or under which, in the case of\n\nleaseholds, the insurer is unable to continue the lease in force for\n\nthe duration of the loan.\n\nC. 1. No such mortgage loan or loans made or acquired by an\n\ninsurer on any one property shall, at the time of investment by the\n\ninsurer, exceed eighty percent (80%) of the value, or if the loan is\n\nfor purchase money, the lesser of eighty percent (80%) of the value\n\nor purchase price of the real property or leasehold securing the\n\nsame, except that such loan or loans may equal the amount of any\n\nguaranty by the United States of America or by any agency or\n\ninstrumentality of the United States of America or by any private\n\ninsurance company licensed as an authorized insurer by the Insurance\n\nDepartment of the State of Oklahoma to write mortgage insurance.\n\nAdditionally, no single mortgage loan to any individual shall exceed\n\nthree percent (3%) of the company's admitted assets, with no more\n\nthan thirty-five percent (35%) of the company's admitted assets\n\ninvested in total aggregate amount in mortgage loans; provided,\n\nhowever, that an insurer may invest up to forty-five percent (45%)\n\nof the company's admitted assets invested in total aggregate amount\n\nin mortgage loans if the portfolio average loan to value is seventy-\n\nfive percent (75%) or less of fair market value.\n\nThe calculation of admitted assets and portfolio average loan to\n\nvalue is based on the insurer's annual statement as of December 31\n\nlast preceding the date of investment, or as shown by a current\n\nfinancial statement on file with the Commissioner.\n\n2. Mortgage loans made or acquired by an insurer prior to\n\nDecember 31, 1992, shall be in compliance with the limitation\n\nprovided in this subsection for total aggregate investment of\n\nadmitted assets in mortgage loans by December 31, 1997. Mortgage\n\nloans made or acquired by an insurer on or after December 31, 1992,\n\nbut prior to September 1, 1993, shall be in compliance with the\n\nlimitations for investment of admitted assets in single mortgage\n\nloans to individuals and total aggregate investments of admitted\n\nassets in mortgage loans provided in this subsection by December 31,\n\n1997. Insurers shall maintain accurate and adequate records\n\nreflecting the provisions of this section and submit such records\n\nwith quarterly and annual statements.\n\nD. No such mortgage loan or loans shall be made or acquired by\n\nan insurer except after an appraisal made by a qualified appraiser\n\nfor the purpose of such investment. No change or modification shall\n\nbe made to such appraisal by any mortgage underwriter unless such\n\nperson is licensed or certified as an appraiser pursuant to the\ntion and submit such records\n\nwith quarterly and annual statements.\n\nD. No such mortgage loan or loans shall be made or acquired by\n\nan insurer except after an appraisal made by a qualified appraiser\n\nfor the purpose of such investment. No change or modification shall\n\nbe made to such appraisal by any mortgage underwriter unless such\n\nperson is licensed or certified as an appraiser pursuant to the\n\nOklahoma Certified Real Estate Appraisers Act or unless such person\n\nhas been provided by the person who made the appraisal written\n\nconsent to make the modification. Such modification shall be\n\ndisclosed to the seller and buyer and/or the seller's agent.\n\nE. No such mortgage loan or loans made or acquired by an\n\ninsurer after July 1, 2006, shall be made or acquired by an insurer\n\nunless the mortgages or mortgage loans are upon improved,\n\nunencumbered real property permitted as an investment pursuant to\n\nSection 1624 of this title.\n\nF. No mortgage loan upon a leasehold shall be made or acquired\n\npursuant to this section unless the terms thereof shall provide for\n\namortization payments to be made by the borrower on the principal\n\nthereof at least once in each year in amounts sufficient completely\n\nto amortize the loan within a period of four-fifths (4/5) of the\n\nterm of the leasehold, inclusive of the term which may be provided\n\nby an enforceable option of renewal, which is unexpired at the time\n\nthe loan is made, but in no event exceeding thirty-five (35) years.\n\nG. Subject to specific limitations otherwise applicable, no\n\nmore than an aggregate of thirty-five percent (35%), except as\n\nprovided in paragraph 1 of subsection C of this section, of the\n\ncompany's admitted assets may be invested in mortgage loans pursuant\n\nto this section, purchase money mortgages pursuant to Section 1623\n\nof this title, and real property pursuant to Section 1624 of this\n\ntitle.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"0f8708a88ab8e0af739d7b6cb99a5f2e016a426d20841ba731965b89a9aae546","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1621","next":"us-ok/okla.-stat.-tit.-36-36-1623"},"notice":"GroundRules: Original legal text. Not legal advice."}