2021 Texas Statutes
Insurance Code
Title 12 - Other Coverage
Chapter 3502 - Mortgage Guaranty Insurance
Subchapter A. General Provisions
Section 3502.003. Mortgage Guaranty Insurance Defined
Sec. 3502.003. MORTGAGE GUARANTY INSURANCE DEFINED. In this chapter, "mortgage guaranty insurance" means insurance against:
(1) financial loss because of nonpayment of principal, interest, and other amounts agreed to be paid under the terms of a note, bond, or other evidence of indebtedness that is secured by an authorized real estate security, provided the improvement on the real estate is:
(A) one or more residential buildings designed to be occupied by not more than four families;
(B) a condominium unit; or
(C) one or more buildings designed to be occupied by five or more families or for industrial or commercial purposes; or
(2) financial loss because of nonpayment of rent and other amounts agreed to be paid under the terms of a written lease for the possession, use, or occupancy of real estate, provided the improvement on the real estate is one or more buildings designed to be occupied for industrial or commercial purposes.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
