2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 73 - Municipalities Investments
7308 - Mortgages.

     § 7308.  Mortgages.
        One or more bonds or other obligations secured by one or more
     mortgages, or in connection with which the obligor gives one or
     more mortgages to indemnify the insurer of the obligation, shall
     be an authorized investment if:
            (1)  Insured by Federal Housing Administrator.--Insured
        by the Federal Housing Administrator pursuant to the National
        Housing Act of June 27, 1934 (48 Stat. 1246), and its
        amendments and supplements heretofore or hereafter enacted;
        or
            (2)  Guaranteed or insured under Federal Servicemen's
        Readjustment Act.--Guaranteed or insured under the Federal
        Servicemen's Readjustment Act of June 22, 1944 (58 Stat.
        284), and its amendments and supplements heretofore or
        hereafter enacted: Provided, That at the date of acquisition
        the guaranty shall be in an amount not less than one-third of
        the sum invested, or, if an insured mortgage, the insurance
        shall be in an amount not less than 15% thereof; or
            (3)  Insured by the Farmers Home Administration, United
        States Department of Agriculture.--Insured by the Farmers
        Home Administration, United States Department of Agriculture,
        pursuant to the Bankhead-Jones Farm Tenant Act of July 22,
        1937 (50 Stat. 522), and its amendments and supplements
        heretofore or hereafter enacted, or pursuant to the act of
        August 28, 1937 (50 Stat. 869), and its amendments and
        supplements heretofore or hereafter enacted; or
            (4)  Other mortgages.--At the date of the acquisition or
        of any extension of the mortgage it shall meet the following
        requirements:
                (i)  Contain an unconditional promise to pay the
            principal of and interest upon obligations which it
            secures.
                (ii)  Be a first lien upon improved real estate
            situated within the Commonwealth, including improved farm
            lands, prior to all other liens except the lien of taxes
            previously levied or assessed but not then payable and
            except taxes then due or payable or delinquent for the
            payment of which taxes provision is made in the mortgage
            settlement.
                (iii)  The unpaid principal amount of the obligations
            shall not exceed four-fifths of the fair value of the
            real estate as fixed by two persons familiar with real
            estate values in the vicinity who shall have actually
            inspected it and shall so certify in a written
            appraisement preserved among the records of the
            fiduciary.
                (iv)  The principal debt evidenced by the obligations
            shall be payable in not more than five years after the
            date of acquisition by the fiduciary, or be amortized
            within a period of not exceeding 30 years from the date
            of the acquisition in substantially equal payments at
            successive intervals of not more than one year each and
            in an amount sufficient to pay the principal debt and
            interest thereon within the term of the loan.
                (v)  All interest has been paid in full to the next
            preceding interest payment date.
        Nothing in this paragraph shall be construed to be a
        limitation upon the power of a fiduciary to accept a purchase
        money obligation in exchange for an asset of the estate or
        trust upon such terms and conditions and with such security
        as shall be reasonable under the circumstances.

        Cross References.  Section 7308 is referred to in section
     7309 of this title.