Tex.
Ins. Code Section 3502.004
Authorized Real Estate Security Defined
(a)
In this chapter, “authorized real estate security” means:(1)
a proprietary lease and a stock membership certificate issued to a tenant stockholder or resident member of a fee simple cooperative housing corporation as defined in Section 216, Internal Revenue Code of 1986; or(2)
a mortgage, deed of trust, wraparound mortgage, or other instrument that constitutes a first lien or charge on real estate or is considered to be the equivalent of a first lien or charge on real estate by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Finance Board, a successor of one of those entities, an agency of this state, or a federal agency, provided:(A)
the improvement on the real estate is a building or buildings designed to be occupied as specified by Section 3502.003 (Mortgage Guaranty Insurance Defined)(1); and(B)
the real estate loan is a type of loan that is:(i)
authorized to be made by a bank, savings and loan association, credit union, or insurer that is supervised and regulated by a department of this state or a federal agency;(ii)
authorized to be made by a mortgage banker that is an approved seller-servicer of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or a successor of one of those entities; or(iii)
approved by the federal secretary of housing and urban development for participation in a mortgage insurance program.(b)
The lien on real estate described by Subsection (a)(2) may be subject and subordinate to:(1)
the lien of a public bond, assessment, or tax if there is not a delinquent installment, call, or payment of or under the bond, assessment, or tax;(2)
an outstanding mineral, oil, or timber right, right-of-way, easement or right-of-way support, sewer right, building restriction, other restriction or covenant, or other condition or regulation of use; or(3)
an outstanding lease on the real estate under which rents or profits are reserved to the owner.
Source:
Section 3502.004 — Authorized Real Estate Security Defined, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.3502.htm#3502.004 (accessed Apr. 29, 2024).
