508.8A - LOANS TO EMPLOYEES.

        508.8A  LOANS TO EMPLOYEES.         1.  A life insurance company having a ratio of statutory surplus      to admitted assets of at least four percent may make, acquire, and      hold loans to employees, officers, and directors under the following      terms and conditions:         a.  The company may make a mortgage loan on real property      owned by an employee of the company which is to serve as the      employee's dwelling, provided the company is regularly and actively      involved in making residential mortgage loans to the public.         b.  The company may acquire a mortgage loan on real property      owned by an employee of the company which is to serve as the      employee's dwelling, provided the company acquiring such loan is      regularly and actively involved in acquiring residential mortgage      loans not involving employees from sources in the secondary market.         c.  The company may acquire a mortgage loan on real property      owned by an employee, officer, or director which is included in a      portfolio of mortgages initiated by others and acquired by the life      insurance company.  The mortgage loans in any such acquired portfolio      of mortgage loans must satisfy both of the following conditions:         (1)  More than seventy-five percent of the dollar value of the      mortgage loans must be for real property that is owned by persons who      are not employees, officers, or directors of the company.         (2)  More than seventy-five percent of the mortgage loans must be      for real property that is owned by persons who are not employees,      officers, or directors of the company.         d.  The company may continue to hold a mortgage loan on real      estate which is assumed by an employee, officer, or director if the      mortgage was originally properly made or acquired by the life      insurance company, provided that all terms and conditions of the      mortgage loan remain unchanged and the mortgage loan is serviced in      accordance with customary servicing practices of prudent lending      institutions.         e.  The company may continue to hold a mortgage on real estate      owned by an officer or director which was properly made or acquired      by the company before the officer or director became an officer or      director of the company, provided that all terms and conditions of      the mortgage loan remain unchanged and the mortgage loan is serviced      in accordance with customary servicing practices of prudent lending      institutions.         2.  As used in this section, "employee" does not include      officers or directors of a life insurance company.  
         Section History: Recent Form
         91 Acts, ch 213, §5         Referred to in § 508.7