Texas Insurance Code - Not Codified - Article 3.40-1. Investments In Income Producing Real Estate
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Art. 3.40-1. INVESTMENTS IN INCOME PRODUCING REAL ESTATE.
Article repealed effective April 1, 2007
Sec. 1. Notwithstanding any provision or limitation of
Article 3.40 of this Code, any life insurance company organized
under the laws of this state may invest any of its funds and
accumulations in improved income producing real estate or any
interest therein, and may hold, improve, maintain, manage, lease,
sell or convey such property or interest therein, subject to the
following terms, conditions and limitations:
(1) The term "improved income producing real estate" as used
in this Article shall include all commercial and industrial real
property, a substantial portion of which has been materially
enhanced in value by the construction of durable, permanent-type
buildings and other improvements costing an amount at least equal
to the value of such real estate exclusive of building and
improvements, as may be held or acquired by purchase or lease, or
otherwise, for the production of income, excepting any
agricultural, horticultural, farm and ranch property, residential
property, single or multiunit family dwelling property, which is
expressly excluded.
(2) The total amount invested by any such company in all
such income producing property and improvements thereof shall not
exceed fifteen per centum of its admitted assets, provided,
however, that the amount invested in any one such property and its
improvements shall not exceed five per centum of its admitted
assets. The admitted assets of the company at any time shall be
determined from its annual statement made as of the last preceding
December 31 and filed with the State Board of Insurance as required
by law. The value of any investment made under this Article shall
be subject to Subdivision 1(c) of Article 3.40 of this Code.
(3) The investment authority granted by this Article 3.40-1
is in addition to and separate and apart from that granted by
Article 3.40 of this Code, provided, however, that no such company
shall make any investment in the properties described in this
Article 3.40-1 which when added to those described in subdivision
1(a) of Article 3.40 of this Code would be in excess of the
limitations provided by subdivision 1(b) of Article 3.40 of this
Code.
Sec. 2. The property owned by such life insurance company
pursuant to this Article shall not be classified as "Texas
Securities".
Sec. 3. Nothing contained in this Article shall permit such a
life insurance company to purchase undeveloped real estate for the
purpose of development or subdivision.
Sec. 4. No life insurance company may invest more than one per
centum of its admitted assets in income producing real estate in any
one year during the first seven years after the effective date of
this Act, provided, however, if a life insurance company invests
less than one per centum of its admitted assets in income producing
real estate during any one year such life insurance company may
thereafter, at any time, invest the difference between the
percentage of admitted assets invested and one per centum of
admitted assets and such percentage shall be in addition to and
cumulative of the amount of income producing real estate in which
such life insurance company may invest in any particular year
hereunder.
Added by Acts 1967, 60th Leg., p. 1753, ch. 660, Sec. 1, eff. Aug.
28, 1967. Amended by Acts 1981, 67th Leg., p. 2657, ch. 713, Sec. 1,
eff. Aug. 31, 1981.
Article: 3.31 3.32 3.33 3.38 3.39 3.39a 3.40 3.40-1 3.41 3.41a 3.49-3 3.50-7A 3.50-7A 3.50-7B 3.51
Last modified: August 11, 2007
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