Okla. Stat. tit. 36, § 36-1622

A. An insurer may invest any of its funds in bonds, notes or

other evidences of indebtedness which are secured by first mortgages

or deeds of trust upon improved, unencumbered real property located

in the United States, or which are secured by first mortgages or

deeds of trust upon leasehold estates having an expired term of not

less than twenty-one (21) years, inclusive of the term which may be

provided by an enforceable option of renewal, in improved,

unencumbered real property located in the United States.

B. Real property shall not be deemed to be encumbered within

the meaning of this section by reason of the existence of

instruments reserving mineral, oil or timber rights, rights-of-way,

sewer rights, rights in walls, nor by reason of any liens for taxes

or assessments not delinquent, nor by reason of building

restrictions or other restrictive covenants, nor when such real

property is subject to lease under which rents or profits are

reserved to the owner, if in any event the security for such loan is

a first lien upon such real property and if there is no condition or

right of reentry or forfeiture under which, in the case of real

property other than leaseholds, such lien can be cut off,

subordinated, or otherwise disturbed or under which, in the case of

leaseholds, the insurer is unable to continue the lease in force for

the duration of the loan.

Oklahoma Statutes - Title 36. Insurance Page 436

C. 1. No such mortgage loan or loans made or acquired by an

insurer on any one property shall, at the time of investment by the

insurer, exceed eighty percent (80%) of the value, or if the loan is

for purchase money, the lesser of eighty percent (80%) of the value

or purchase price of the real property or leasehold securing the

same, except that such loan or loans may equal the amount of any

guaranty by the United States of America or by any agency or

instrumentality of the United States of America or by any private

insurance company licensed as an authorized insurer by the Insurance

Department of the State of Oklahoma to write mortgage insurance.

Additionally, no single mortgage loan to any individual shall exceed

three percent (3%) of the company's admitted assets, with no more

than thirty-five percent (35%) of the company's admitted assets

invested in total aggregate amount in mortgage loans; provided,

however, that an insurer may invest up to forty-five percent (45%)

of the company's admitted assets invested in total aggregate amount

in mortgage loans if the portfolio average loan to value is seventy-

five percent (75%) or less of fair market value.

The calculation of admitted assets and portfolio average loan to

value is based on the insurer's annual statement as of December 31

last preceding the date of investment, or as shown by a current

financial statement on file with the Commissioner.

2. Mortgage loans made or acquired by an insurer prior to

December 31, 1992, shall be in compliance with the limitation

provided in this subsection for total aggregate investment of

admitted assets in mortgage loans by December 31, 1997. Mortgage

loans made or acquired by an insurer on or after December 31, 1992,

but prior to September 1, 1993, shall be in compliance with the

limitations for investment of admitted assets in single mortgage

loans to individuals and total aggregate investments of admitted

assets in mortgage loans provided in this subsection by December 31,

1997. Insurers shall maintain accurate and adequate records

reflecting the provisions of this section and submit such records

with quarterly and annual statements.

D. No such mortgage loan or loans shall be made or acquired by

an insurer except after an appraisal made by a qualified appraiser

for the purpose of such investment. No change or modification shall

be made to such appraisal by any mortgage underwriter unless such

person is licensed or certified as an appraiser pursuant to the
tion and submit such records

with quarterly and annual statements.

D. No such mortgage loan or loans shall be made or acquired by

an insurer except after an appraisal made by a qualified appraiser

for the purpose of such investment. No change or modification shall

be made to such appraisal by any mortgage underwriter unless such

person is licensed or certified as an appraiser pursuant to the

Oklahoma Certified Real Estate Appraisers Act or unless such person

has been provided by the person who made the appraisal written

consent to make the modification. Such modification shall be

disclosed to the seller and buyer and/or the seller's agent.

E. No such mortgage loan or loans made or acquired by an

insurer after July 1, 2006, shall be made or acquired by an insurer

unless the mortgages or mortgage loans are upon improved,

Oklahoma Statutes - Title 36. Insurance Page 437

unencumbered real property permitted as an investment pursuant to

Section 1624 of this title.

F. No mortgage loan upon a leasehold shall be made or acquired

pursuant to this section unless the terms thereof shall provide for

amortization payments to be made by the borrower on the principal

thereof at least once in each year in amounts sufficient completely

to amortize the loan within a period of four-fifths (4/5) of the

term of the leasehold, inclusive of the term which may be provided

by an enforceable option of renewal, which is unexpired at the time

the loan is made, but in no event exceeding thirty-five (35) years.

G. Subject to specific limitations otherwise applicable, no

more than an aggregate of thirty-five percent (35%), except as

provided in paragraph 1 of subsection C of this section, of the

company's admitted assets may be invested in mortgage loans pursuant

to this section, purchase money mortgages pursuant to Section 1623

of this title, and real property pursuant to Section 1624 of this

title.