Idaho State Statutes - Idaho Attorney Directory

In this chapter unless context or subject matter
otherwise requires:
(1) "Mortgage guaranty insurance" means:
(a) Insurance against financial loss by reason of nonpayment of
principal, interest and other sums agreed to be paid under the terms of
any note or bond or other evidence of indebtedness secured by a mortgage,
deed of trust, or other instrument constituting a lien or charge on real
property, provided the improvement on such real property is a residential
building or buildings designed for occupancy by not more than four (4)
families, or a condominium unit.
(b) Insurance against financial loss by reason of nonpayment of
principal, interest and other sums agreed to be paid under the terms of
any note or bond or other evidence of indebtedness secured by a mortgage,
deed of trust, or other instrument constituting a lien or charge on real
property, provided the improvement on such real property is a building or
buildings designed for occupancy by five (5) or more families or designed
to be occupied for industrial or commercial purposes.
(c) Insurance against financial loss by reason of nonpayment of rent and
other sums agreed to be paid under the terms of a written lease for the
possession, use or occupancy of real property, provided the improvement on
such real property is a building or buildings designed to be occupied for
industrial or commercial purposes.
(2) "Authorized real property security" for the purposes of paragraphs
(a) and (b) of subsection (1) of this section means an amortized note, bond or
other evidence of indebtedness, not exceeding one hundred three percent (103%)
of the fair market value of the real estate, secured by a mortgage, deed of
trust, or other instrument constituting a first lien or charge on real
property with any percentage in excess of one hundred percent (100%) being
used to finance fees and closing costs on such indebtedness; provided:
(a) The real property loan secured in such manner is one which a bank,
savings and loan association, or an insurance company, which is supervised
and regulated by a department of this state or an agency of the federal
government, is authorized to make.
(b) The improvement on such real property is a building or buildings
designed for occupancy as specified by paragraphs (a) and (b) of
subsection (1) of this section.
(c) The lien on such real property may be subject and subordinate to the
following:
(i) 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.
(ii) Outstanding mineral, oil or timber rights, rights-of-way,
easements or rights-of-way of support, sewer rights, building
restrictions or other restrictions or covenants, conditions or
regulations of use, or outstanding leases upon such real property
under which rents or profits are reserved to the owner thereof.
(3) "Contingency reserve" means an additional premium reserve established
for the protection of policyholders against the effect of adverse economic
cycles or losses.
(4) "Policyholders' surplus" means the aggregate of paid-in capital
stock, surplus and contingency reserve.

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