Arizona § 20-557 - Second mortgages
Full text of Arizona Arizona Revised Statutes § 20-557 — Second mortgages, with citation guidance and answers to common questions.
§ 20-557. Second mortgages
A. An insurer may invest in bonds, notes or other evidences of indebtedness that are secured by second mortgages or deeds of trust on improved real property located in the United States. An insurer shall not make or acquire either:
1. A loan or investment if the total of the outstanding indebtedness of the first and second mortgages or deeds of trust exceeds eighty per cent of the value of the real property.
2. A loan secured by a second lien if the borrower, without the approval of the insurer, is entitled to increase the principal amount of the indebtedness secured by the prior first mortgage except to the extent the amount of the increase is applied in reduction of the investment held by the insurer.
B. An insurer may invest in construction loans pursuant to this section if the real property is improved or will be improved with the proceeds of the construction loan and if the insurer's total investment in construction loans is not more than the amount prescribed in section 20-553, subsection H.
Frequently Asked Questions About Arizona § 20-557
What does Arizona Revised Statutes § 20-557 cover?
Section 20-557 ("Second mortgages") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 20-557?
A common citation format is "Arizona Revised Statutes § 20-557" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 20-557 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.