§ 6403. Management and powers of title insurance corporation. (a) The
business and affairs of every title insurance corporation shall be
managed under the direction of its board of directors.

(b) Every title insurance corporation shall, subject to the exceptions
and restrictions contained in this chapter, have power to do, in
addition to the powers granted by the business corporation law, only the
following kinds or any of the kinds of business, of which those
specified in paragraphs one and two hereof shall be deemed doing an
insurance business:

(1) To make and to guarantee the correctness of searches for all
instruments affecting titles to real property, chattels real, and
cooperative units and proprietary leases, and for all liens or charges
affecting the same.

(2) To issue title insurance policies.

(3) To examine titles to real property and chattels real and to
procure and furnish information in relation thereto and to personal
property used in connection therewith.

(4) To invest in, purchase and sell mortgages upon improved and
unencumbered real property appraised for at least fifty per centum more
than the amount loaned thereon or obligations secured by such mortgages
or senior participations or interests therein, without guaranteeing the
performance of any contract in respect thereto or the guaranteeing of
payment of taxes, penalties, foreclosure costs or other expenses with
respect to the same. "Senior participation", in this section, means all
that portion or portions of the obligation secured by a first mortgage
which has legal priority over all other portion or portions of such
obligation, known as junior participation.

(5) To invest in or acquire for resale, (i) obligations secured by a
mortgage (including any part of an issue of such obligations) which are
insured or committed to be insured by the Federal Housing Administrator,
or (ii) debentures lawfully issued by the Federal Housing Administrator.

(6) To act as agent in fact for investors in, and the holders of,
mortgages or obligations mentioned in paragraphs four and five hereof,
and interests therein, in the purchase, sale and servicing thereof; to
act as agent in fact for investors in supervising and inspecting land
and buildings for the purpose of loans to be made thereon, and in
recommending, without any guaranty or similar undertaking as to the
amounts of such loans and amounts to be advanced thereon, but not to
engage in the business of making real estate appraisals.

(c) No title insurance corporation doing business in this state shall
expose itself to any loss on any one risk in an amount exceeding the sum
of its capital, surplus, statutory premium and any voluntary reserves,
all as shown in its most recent quarterly or annual statement filed with
the superintendent. Any risk or portion thereof which shall have been
reinsured with an assuming insurer authorized to do such business in
this state shall be deducted in determining the limitation of risk
prescribed in this subsection. Credit to the ceding insurer for
reinsurance with an unauthorized insurer shall be allowed to the extent
permitted by a regulation of the superintendent.