20-561. Collateral loans
176 words·~1 min read·
/az/title-20/20-561A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. An insurer may lend its funds in negotiable promissory notes on the pledge of any investment that qualifies under this article, other than real property. The insurer shall not make a loan that is more than seventy-five per cent of the market value of the collateral pledged. The loan documents shall provide that all of the rights and remedies of a secured party provided by the law governing secured transactions in the jurisdiction of the loan are available to the insurer, except that a borrower shall not have more than twenty days to correct a default after the secured party has given notice of default in writing to the borrower.
B. The amount loaned is an admitted asset to the extent that the amount loaned plus the insurer's investments that are like those pledged are not more than the applicable investment limitation or the limitation on the percentage of assets invested with a single person prescribed by this article.
C. Sections 20-553, 20-554, 20-556 and 20-557 apply to loans that are secured by real estate.