HARRY W. NICE, GOVERNOR. 1063

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 here-
after 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 mortgages on unincumbered fee simple, or im-
proved 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 additional 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, pro-
vided, that each loan is less than the net reserve of the
policy on which the loan is made, according to the stand-
ard 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 value, or without any ascer-
tainable value on the exchange, 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 company, by placing
some of them upon the market, and obtaining a bona fide
offer therefor, shall so establish for them a different value;
provided further, that it may also be loaned upon first