California Insurance Code 12540-12543
12540. Any mortgage insurer which has heretofore issued mortgage participation certificates in accordance with the provisions of the law of this State in force at the time of such issuance may, with the consent of the commissioner: (a) Amend such certificates and any mortgage policy issued in connection therewith. (b) Cancel and retire all or any part of such certificates presently outstanding and issue in exchange therefor other new certificates representing a similar proportionate interest in the group of assets held in trust for the benefit of the holders of such presently outstanding mortgage participation certificates. 12541. The plan under which such amended certificates or such other new certificates are to be issued, and the form of such amended certificates and such other new certificates, shall be submitted to the Insurance Commissioner for his approval. All such amended or new certificates and any agreement under which the same may be issued and any mortgage policy issued in connection therewith shall contain, notwithstanding anything in this code to the contrary, such terms and provisions as are approved or required by the commissioner. 12542. Any executor, administrator, guardian, trustee, insurer, bank, banking institution or trust company, and any officer of this State, now holding one or more mortgage participation certificates as a legal investment or as a fund or deposit required by law to be made with this State, may consent to the amendment of such certificates or may exchange such certificates for other new certificates issued as herein provided, and may hold such amended certificates or such other new certificates as legal investments or as securities eligible for deposit with this State or with its officers or officials in the same manner and to the same extent as the particular mortgage participation certificates so amended, or the particular certificates in exchange for which such other new certificates are issued, are now held. 12543. At any time during the emergency period as hereinafter defined any amendments or modifications of any trust agreement under which mortgage participation certificates are issued or of such certificates or of any mortgage policy issued in connection therewith, or of any term, covenant, condition or provision of such agreement, certificates or policy, shall, if made as hereinabove provided, become fully effective and binding upon all of the holders of such certificates outstanding under such trust agreement when consented to in writing by the holders of seventy-five per cent in interest of all certificates outstanding under such trust agreement. The term "emergency period" as used in this section shall mean the period commencing May 15, 1933, and ending September 1, 1936; except that said emergency period may be terminated at any time prior to September 1, 1936, by order of the commissioner.
