WM. PRESTON LANE, JR., GOVERNOR. 195

said new paragraph to follow immediately after paragraph
(k) of Sub-section (1) of said Section 25 and to be known
as paragraph (k-a) authorizing domestic stock and mutual
life insurance companies to invest a portion of their funds
in unencumbered fee-simple or improved leasehold real
estate.

SECTION 1. Be it enacted, by the General Assembly of Mary-
land, That a new paragraph be and the same is hereby added
to Sub-section (1) of Section 25 of Article 48A of the Anno-
tated Code of Maryland (1943 Supp.), title "Insurance", sub-
title "General Provisions", said new paragraph to follow im-
mediately after paragraph (k) of Sub-section (1) of said
Section 25 of said Article, to be known as paragraph (k-a),
and to read as follows:

25.

(1).

(k-a) Such unencumbered, fee-simple or improved leasehold
real estate other than property to be used primarily for min-
ing, recreational, amusement, hotel or club purposes, as may
be acquired as an investment for the production of income, or
as may be acquired to be improved or developed for any such
investment purpose, subject to the following conditions and
limitations: (1) The cost of each parcel of real or leasehold
property so acquired under the authority of this paragraph,
including the cost to the company of the improvement or de-
velopment thereof, when added to the book value of all other
real or leasehold property then held by it pursuant to this
paragraph, shall not exceed 5 percent of its admitted assets
as of the 31st day of December next preceding, and when
added to the value of all real estate however acquired or held
for investment, including home office and branch office prop-
erties, shall not exceed 20% of the company's total admitted
assets; and (2) The cost of each parcel of real or leasehold
property acquired under the authority of this paragraph, in-
cluding the cost to the company of the improvement or de-
velopment thereof, shall not exceed one-fourth of 1 percent of
the company's admitted assets as of the 31st day of December
next preceding. Except as may be otherwise required by the
Commissioner, each parcel of real or leasehold property held
by the company under this paragraph, shall be valued on its
books as of the 31st day of December of each year at an amount
that will include a write-down of the cost of such property, in-
cluding all improvement or development costs, at a rate that
will average not less than 2 percent per annum of such cost
for each year or part thereof, that the property has been so