INSURANCE. 623

surance laws of the State where incorporated or organized, and approved
by the proper official thereof and having authority therefor, to an amount
not less than that required of companies doing the same class of business
by the laws of this State to be deposited with the treasurer of this State.

An Code, 1924, sec. 25. 1922, ch. 492, sec. 26. 1933 (Special Sess. ), ch. 109,

1935, ch. 511.

25. Investment of Reserves. Every insurance company, domestic or
foreign, authorized to do business in this state, must have and continually
keep an amount equal to its entire reinsurance reserve and all other debts
and claims against it, exclusive of capital stock, invested in the bonds,,
coin or treasury notes of the United States, or interest, or dividend-paying
bonds or stocks of this or any other state of the United States or of any
county, incorporated city or other corporation of this or any other state
having legal authority to issue the same, and not in default, or in real
estate for the office or business purposes only of said company or bonds,
of the Home Owners Loan Corporation, a corporation created under an
Act of Congress of the United States, approved June 13, 1933; or in
securities of national mortgage associations or similar national mortgage
credit institutions now or hereafter organized under Title III of an Act of
Congress of the United States approved June 27, 1934, and known as
the "National Housing Act"; provided, however, that they shall have the
right to purchase and hold real estate under a foreclosure of their own
mortgages for a period of not more than five years, and for five years
longer if, in the judgment of the insurance commissioner, it is advisable
so to do; or it may be invested in ground rents, or loaned upon first mort-
gages on unincumbered fee simple, or improved leasehold, real estate, in
this or any other state of the United States, to an amount not exceeding
sixty per cent of the fair market value of such fee simple, or improved
leasehold, real estate. Whenever such loans are made upon fee simple,
or improved leasehold, real estate which is improved by a building or
buildings, the said improvements shall be insured against loss by fire, and
the fire insurance policies shall be duly assigned to the mortgagee as addi-
tional security for the said loan; or it may be loaned on pledges of any
security named in this section, or on the policies of the company in force,
provided, that each loan is less than the net reserve of the policy on which
the loan is made, according to the standard of valuation prescribed in
this Article; and provided, that the current market value of such pledged
securities, other than the bonds and stocks of this State, or of the United
States, shall be at all times during the continuance of such loans, at least
ten per cent more than the sum loaned on them. All such loans shall be
subject to the power of the company to terminate the same in case of
the depreciation of the securities below that limit. In all investments
made upon mortgage securities, the evidence of the debt shall accompany
the mortgage or deed of trust, and the insurance commissioner shall have
the authority, when any of the securities mentioned in this section and
held by any insurance company reporting to him are of doubtful market