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HomeFinancial CodeDiv. 11.5Ch. 1§ 27001 Mortgage Association Investment Authority

§ 27001 Mortgage Association Investment Authority

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 27001 Mortgage Association Investment Authority

Key Takeaways

  • •Banks and insurance companies can buy special home loan bonds from national mortgage groups.
  • •They can use their own money or money they're holding for others (like trust funds) to buy these bonds.
  • •This rule includes all kinds of money they manage, even if there are usually strict rules about how to invest it.

Example

A bank has money from people's savings accounts and wants to make safe investments.

The bank can use some of that money to buy bonds from a big home loan company like Fannie Mae. This is allowed even if the money is in a trust or has other investment rules.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 27001 Mortgage Association Investment Authority

Insurance companies, personal finance companies, mortgage companies, mortgage insurance companies, building and loan associations, trust companies, fiduciaries, fiduciary institutions, or public or private agencies may invest in, or purchase obligations of national mortgage associations. The investment or purchase may be made with their funds or the money in their custody or possession, including but not being restricted to, all trust funds, or funds the investment of which is regulated by law. (Enacted by Stats. 1951, Ch. 364.)

Last verified: January 23, 2026

Key Terms

insurancepossessionfiduciarymortgagecustodyobligationinvestment

Related Statutes

  • § 27000 Federal Housing Insured Investments
  • § 27002 Federal Housing Loan Investments
  • § 27003 Real Property Loan Insurance
  • § 50002 Mortgage Lender Licensing Requirements
  • § 5105.8 Corporate Debt Security Definition

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 27001.
View Official Source