Nebraska Statutes 44-5135. Leased property
An insurer may invest in obligations secured by an assignment of a lease to or for the benefit of the insurer and the rents payable under the lease if:
Terms Used In Nebraska Statutes 44-5135
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) The lessee or ultimate guarantor of any lease securing the obligation is an entity the obligations of which are authorized for investment under sections 44-5123 to 44-5131 ;
(2) The rentals assigned are sufficient to repay not less than ninety percent of the obligation within the unexpired term of the lease excluding any term that may be provided by an enforceable option of renewal; and
(3) A first lien on the lessor’s interest in the unencumbered leased property is obtained as additional security for the obligation for which the rentals described in subdivision (2) of this section are not sufficient to repay the obligation.