Texas Local Government Code - Section 116.055. First Mortgages On Improved Real Property
Legal Research Home >
Texas Lawyer > Local Government Code > Texas Local Government Code - Section 116.055. First Mortgages On Improved Real Property
§ 116.055. FIRST MORTGAGES ON IMPROVED REAL
PROPERTY. (a) If approved by the commissioners court, closed first
mortgages on improved and unencumbered real property located in
this state that are assigned to the county judge in a duly
acknowledged instrument qualify as security under this subchapter.
(b) Before approving a mortgage as security, the
commissioners court shall require:
(1) a written opinion by an attorney selected by the
commissioners court showing that the lien is superior to any other
claim to or right in the real property; and
(2) insurance approved by the county judge covering
the improvements on each tract of pledged real property and
providing that a loss is payable to the county judge.
(c) An insurance policy required under Subsection (b) must
be issued by a stock fire insurance company or mutual fire insurance
company that has a $100,000 surplus in excess of all legal reserves
and other liabilities.
(d) A mortgage accepted as security under this section shall
immediately be recorded in each county in which part of the real
property is located.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Section: 116.025 116.026 116.027 116.051 116.052 116.053 116.054 116.055 116.056 116.0565 116.057 116.058 116.059 116.060 116.081
Last modified: August 10, 2007
|
