EFFECT OF MERGER OR CONSOLIDATION ON CERTAIN INVESTMENTS

(a) This section applies to each investment of an affected corporation, including an investment in real property, that: (1) was authorized as a proper asset, as of the date on which the investment was made and under the laws of the state in which the insurance corporation was organized, for investment of funds of an insurance corporation; and (2) is taken over by the new or surviving corporation under the terms of the merger or consolidation. (b) On the merger or consolidation of two or more insurance corporations under this chapter, an investment of the affected corporations described by Subsection (a) is a proper asset under the laws of this state of the new or surviving corporation if the investment is: (1) approved by the commissioner; and (2) taken over on terms satisfactory to the commissioner. (c) A new or surviving corporation that acquires, under the terms of the merger or consolidation, real property that exceeds the amount of real property permitted by the applicable sections of this code relating to owning or holding real property must sell and dispose of the excess real property: (1) within the period specified by those sections; or (2) within a longer period if the corporation obtains a certificate from the commissioner: (A) stating that the interests of the corporation will materially suffer by the forced sale of the affected real property; and (B) specifying the longer period for the sale of the excess real property. (d) This section does not preclude the designation and use of the acquired excess real property as branch offices in accordance with this code.