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                                                       PRINTER'S NO. 286

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 250 Session of 2007


        INTRODUCED BY BROWNE, BOSCOLA, TARTAGLIONE, ORIE, WOZNIAK,
           COSTA, M. WHITE, EARLL, ARMSTRONG, RHOADES, WAUGH AND
           BRUBAKER, MARCH 8, 2007

        REFERRED TO BANKING AND INSURANCE, MARCH 8, 2007

                                     AN ACT

     1  Regulating the amount of property insurance coverage required by
     2     certain lenders.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Mortgage
     7  Property Insurance Coverage Act.
     8  Section 2.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Lender."  Any bank, savings bank, savings and loan
    13  association, credit union, mortgage bank, mortgage broker,
    14  finance company, consumer discount company or other financial
    15  institution or person that lends money to a borrower and secures
    16  the loan by a mortgage given by the borrower on real property or
    17  by placing a lien against real property.


     1     "Property insurance coverage."  Real property insurance
     2  against losses caused by perils that commonly are covered in
     3  insurance policies described with terms similar to "standard
     4  fire" or "standard fire with extended coverage."
     5  Section 3.  Restriction.
     6     No lender may require a borrower, as a condition of obtaining
     7  or maintaining a secured loan, to obtain property insurance
     8  coverage which exceeds the replacement value of buildings and
     9  structures situate on the land used to secure the loan. A
    10  borrower on a loan secured by real property may not be required
    11  to insure the value of the land.
    12  Section 10.  Effective date.
    13     This act shall take effect immediately.












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