§ 58-3-45. Insurance as security for a loan by the company. - North Carolina Statutes

§58‑3‑45.  Insurance as security for a loan by the company.

Where an insurance company, asa condition for a loan by such company, of money upon mortgage or othersecurity, requires that the borrower insure either his life or that of another,or his property, or the title to his property, with the company, and assign orcause to be assigned to it a policy of insurance as security for the loan, andagree to pay premiums thereon during the continuance of the loan, whether thepremium is paid annually, semiannually, quarterly, or monthly, such premiumsshall not be considered as interest on such loans, nor will any loan berendered usurious by reason of any such requirements, where the rate ofinterest charged for the loan does not exceed the legal rate and where thepremiums charged for the insurance do not exceed the premiums charged to otherpersons for similar policies who do not obtain loans. (1915,c. 8; 1917, c. 61; C.S., s. 6291.)