ART. 42. ] INSURANCE COMPANIES.

son or company wilfully making a false statement in any report to
the insurance commissioner shall be liable to the fines imposed by
section nine hereof.

369

8. The capital stock of no insurance company, mutual insurance
companies excepted, incorporated by this State, or incorporated by
the laws of any other State or nation, and doing business in this
State, whether life, fire, marine, or inland insurance, shall be less
than one hundred thousand dollars; and every insurance company
authorized to do business in this State, must have, and continually
keep, an amount equal to its entire reinsurance reserve, and all other

1878, 0 106
Amount of
capital stock
required

debts and claims against it, exclusive of capital stock invested in
the bonds, coin, or treasury notes, of the United States, or 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, not only bearing but
paying interest, or it may be invested in real estate for their office

Amount and
character of
securities.

or business purpose only; 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 commis-
sioner it is advisable so to do, or it may be invested in ground rents,
or loaned upon mortgages of unincumbered real estate, in this or
any other State of the United States, worth at least double the
amount loaned thereon exclusive of buildings, except where such
buildings are insured against fire, and the policies duly assigned as
additional security, when the value of the buildings so insured — to
an extent not exceeding the amount for which they are insured —
shall be taken into account as a part of the security for such loan,
in determining whether the security is worth double the amount
loaned thereon; 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 pre-
scribed in this act; 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 con-
tinuance of such loans, at least ten per cent more than the sum
loaned on them; and 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; and provided, that in all invest-
ments made upon mortgage securities, the evidence of the debt shall
accompany the mortgage or deed of trust; and the insurance com-
missioner shall have the authority, when any of the securities men-
tioned in this section and held by any insurance company reporting
to him, are of doubtful market value, or without any ascertainable
value in the exchanges, to cause the same to be appraised by two
disinterested and competent persons, whose estimate of the value
of such securities shall be taken to be the value thereof unless the

24

Provisos.