(1) An insurer may invest in bonds or notes secured by a first mortgage on real estate in the United States or Canada if the amount loaned by the insurer, together with any amount secured by an equal security interest, does not exceed seventy-five percent of the appraised value of the real estate and improvements at the time of making the investment. The limitation in this subsection shall not: (a) Apply to investments authorized under section 44-5132; (b) Prohibit an insurer from renewing or extending a loan for the original amount when the value of such real estate has depreciated; (c) Prohibit an insurer from accepting, as part payment for real estate sold by it, a mortgage thereon for more than seventy-five percent of the purchase price of such real estate; or (d) Prohibit an insurer from advancing additional loan funds to protect its real estate security.
(2) An insurer may invest in bonds or notes secured by a first mortgage on leasehold estates in improved real estate located in the United States or Canada if: (a) Such underlying real estate is unencumbered except by rentals to accrue therefrom to the owner of the real estate; (b) There is no condition or right of reentry or forfeiture under which such lien can be cut off, subordinated, or otherwise disturbed so long as the lessee is not in default; (c) The amount loaned by the insurer, together with any amount secured by an equal security interest, does not exceed seventy-five percent of the appraised value of such leasehold with improvements at the time of making the loan; and (d) Such mortgage loan will be completely amortized during the unexpired portion of the lease or leasehold estate.
(3) Nothing in this section shall prevent any amount invested under this section that exceeds seventy-five percent of the appraised value of the real estate or leasehold and improvements, as the case may be, from being authorized under section 44-5153.
(4) All buildings and other real estate improvements which constitute a material part of the value of the mortgaged premises, whether estates in fee or leasehold estates or combination thereof, shall be (a) substantially completed before the investment is made and (b) kept insured against loss or damage by fire or windstorm in a reasonable amount for the benefit of the mortgagee.
(5) If there are more than four holders of the issue of such bonds or notes described in subsection
(1) or
(2) of this section, (a) the security of such bonds or notes, as well as all collateral papers including insurance policies executed in connection therewith, shall be made to and held by a trustee, which trustee shall be a solvent bank or trust company having a paid-in capital of not less than two hundred fifty thousand dollars, except in case of a bank or trust company incorporated under the laws of this state, in which case a paid-in capital of not less than one hundred thousand dollars shall be required, and (b) it shall be agreed that, in case of proper notification of default, such trustee, upon request of at least twenty-five percent of the holders of the par amount of the bonds outstanding and proper indemnification, shall proceed to protect the rights of such bondholders under the provisions of the trust indenture.
(6) An insurer's investments authorized under this section shall not exceed forty percent of its admitted assets, and an insurer's investments authorized under this section and section 44-5144, in the aggregate, shall not exceed fifty percent of its admitted assets.