PARRIS N. GLENDENING, Governor

Ch. 36

(I)       SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION,
OBLIGATIONS ISSUED OR GUARANTEED BY THE AFRICAN DEVELOPMENT BANK,
ASIAN DEVELOPMENT BANK, INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT, OR INTERNATIONAL FINANCE CORPORATION; AND

(II)     BONDS OR OTHER EVIDENCES OF INDEBTEDNESS THAT:

1.        ARE NOT IN DEFAULT AS TO PRINCIPAL OR INTEREST;

2.        ARE VALID AND LEGALLY AUTHORIZED OBLIGATIONS
ISSUED, ASSUMED, OR GUARANTEED BY THE UNITED STATES, A STATE, A COUNTY,
CITY, TOWN, VILLAGE, MUNICIPALITY, DISTRICT, OR POLITICAL SUBDIVISION OF A
STATE, OR A CIVIL DIVISION OR PUBLIC INSTRUMENTALITY OF ANY OF THESE
ENTITIES;

3.        BY APPLICABLE STATUTORY OR OTHER LEGAL
REQUIREMENTS, ARE PAYABLE, AS TO BOTH PRINCIPAL AND INTEREST, FROM
TAXES LEVIED OR BY LAW REQUIRED TO BE LEVIED ON ALL TAXABLE PROPERTY
OR ALL TAXABLE INCOME WITHIN THE JURISDICTION OF THE GOVERNMENTAL
UNIT OR FROM ADEQUATE SPECIAL REVENUES PLEDGED OR OTHERWISE
APPROPRIATED OR BY LAW REQUIRED TO BE PROVIDED FOR THE PURPOSE OF THE
PAYMENT OF OBLIGATIONS; AND

4.        ARE NOT PAYABLE SOLELY OUT OF SPECIAL
ASSESSMENTS ON PROPERTIES BENEFITED BY LOCAL IMPROVEMENTS.

(2) AN INSURER MAY NOT INVEST MORE THAN 5% OF ITS TOTAL
ADMITTED ASSETS IN OBLIGATIONS OF THE AFRICAN DEVELOPMENT BANK, ASIAN
DEVELOPMENT BANK, INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT, OR INTERNATIONAL FINANCE CORPORATION.

(E) CORPORATE OBLIGATIONS.

(1)      THIS SUBSECTION DOES NOT APPLY TO OBLIGATIONS ELIGIBLE FOR
INVESTMENT UNDER SUBSECTION (J), (K), OR (L) OF THIS SECTION.

(2)      THE RESERVE INVESTMENTS OF AN INSURER MAY INCLUDE
OBLIGATIONS THAT ARE NOT IN DEFAULT AS TO PRINCIPAL OR INTEREST, THAT
ARE ISSUED, ASSUMED, OR GUARANTEED BY A SOLVENT INSTITUTION CREATED OR
EXISTING UNDER THE LAWS OF THE UNITED STATES OR A STATE, AND THAT
QUALIFY UNDER ANY OF THE FOLLOWING SUBPARAGRAPHS:

(I) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, THE
OBLIGATIONS ARE SECURED BY ADEQUATE COLLATERAL SECURITY AND BEAR
FIXED INTEREST, AND, DURING EACH OF ANY 3, INCLUDING EITHER OF THE LAST 2,
OF THE 5 FISCAL YEARS IMMEDIATELY PRECEDING THE DATE OF ACQUISITION BY
THE INSURER, THE NET EARNINGS AVAILABLE FOR FIXED CHARGES OF THE
ISSUING, ASSUMING, OR GUARANTEEING INSTITUTION MUST HAVE BEEN NOT LESS
THAN ONE AND ONE-QUARTER TIMES THE TOTAL OF THE INSTITUTION'S FIXED
CHARGES FOR THE YEAR;

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