SECTIONS 12540-12543 - California Statutes

INSURANCE CODE

SECTION 12540-12543

12540. Any mortgage insurer which has heretofore issued mortgage
participation certificates in accordance with the provisions of the
law of this State in force at the time of such issuance may, with the
consent of the commissioner:
(a) Amend such certificates and any mortgage policy issued in
connection therewith.
(b) Cancel and retire all or any part of such certificates
presently outstanding and issue in exchange therefor other new
certificates representing a similar proportionate interest in the
group of assets held in trust for the benefit of the holders of such
presently outstanding mortgage participation certificates.

12541. The plan under which such amended certificates or such other
new certificates are to be issued, and the form of such amended
certificates and such other new certificates, shall be submitted to
the Insurance Commissioner for his approval. All such amended or new
certificates and any agreement under which the same may be issued and
any mortgage policy issued in connection therewith shall contain,
notwithstanding anything in this code to the contrary, such terms and
provisions as are approved or required by the commissioner.

12542. Any executor, administrator, guardian, trustee, insurer,
bank, banking institution or trust company, and any officer of this
State, now holding one or more mortgage participation certificates as
a legal investment or as a fund or deposit required by law to be
made with this State, may consent to the amendment of such
certificates or may exchange such certificates for other new
certificates issued as herein provided, and may hold such amended
certificates or such other new certificates as legal investments or
as securities eligible for deposit with this State or with its
officers or officials in the same manner and to the same extent as
the particular mortgage participation certificates so amended, or the
particular certificates in exchange for which such other new
certificates are issued, are now held.

12543. At any time during the emergency period as hereinafter
defined any amendments or modifications of any trust agreement under
which mortgage participation certificates are issued or of such
certificates or of any mortgage policy issued in connection
therewith, or of any term, covenant, condition or provision of such
agreement, certificates or policy, shall, if made as hereinabove
provided, become fully effective and binding upon all of the holders
of such certificates outstanding under such trust agreement when
consented to in writing by the holders of seventy-five per cent in
interest of all certificates outstanding under such trust agreement.
The term "emergency period" as used in this section shall mean the
period commencing May 15, 1933, and ending September 1, 1936; except
that said emergency period may be terminated at any time prior to
September 1, 1936, by order of the commissioner.