HERBERT R. O'CONOR, GOVERNOR. 599
CHAPTER 555.

(House Bill 76)

AN ACT to add a new section to Article 4SA of the Anno-
tated Code of Maryland (1939 Edition), title "Insurance",
sub-title "Mutual Insurance Companies", said new section
to follow immediately after Section 152 and to be known as
Section 152A, requiring deposits of approved securities by
all domestic, foreign and alien mutual companies hereafter
licensed to write motor, vehicle liability, general public lia-
bility, or compensation insurance, or fidelity or surety bonds.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That a new section be and the same is hereby added to
Article 48A of the Annotated Code of Maryland (1939 Edi-
tion), title "Insurance", sub-title, "Mutual Insurance Com-
panies", said new section to follow immediately after Section
152 and to be known as Section 152A.

152A. (Deposit of Securities by Certain Domestic, Foreign
and Alien Mutual Companies. ) Every domestic company here-
after organized and having charter power to Write motor vehi-
cle liability, general public liability, or compensation insur-
ance, or fidelity or surety bonds, shall, before being entitled
to transact any business of insurance, assign to and deposit
with the Treasurer of the State of Maryland, in trust, as secu-
rity for all the holders of policies of said company, bonds,
coin or treasury notes of the United States of America, bonds
of the State of Maryland or of any county or municipal cor-
poration of this State, or of the Home Owners Loan Corpora-
tion, a corporation created under an Act of Congress of the
United States, approved June 13, 1933, ground rents, first
mortgages and/or interest-paying bonds secured by first mort-
gage on unencumbered real estate situated in this State, such
mortgages not to exceed sixty-six and two-thirds (66 2/3%)
per cent, of the fair market value of such real estate, and not
in default, having a market value of not less than one hundred
thousand dollars ($100, 000). Every foreign and alien company
hereafter applying for admission in this State and having
charter power to write motor vehicle liability, general public
liability, or compensation insurance, or fidelity or surety bonds,
shall, before being entitled to receive a license to do any busi-
ness of insurance in this State, have on deposit with some
proper official of the State where incorporated or organized, or
in some other State of the United States, in trust as security
for all the holders of policies of said company, coin, notes or
securities authorized by the insurance laws of the State where