284 LAWS OF MARYLAND. [CH. 169

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, provided, that each loan is less than the
net reserve of the policy on which the loan is made, accord-
ing 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 con-
tinuance 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 ac-
company the mortgage or deed of trust, and the insurance
commissioner shall have the authority, when any of the se-
curities mentioned in this section and held by any insurance
company reporting to him are of doubtful market value, or
without any ascertainable 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 plac-
ing 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 mort-
gages which the Federal Housing Administrator has insured
or has made a commitment to insure or invested in mortgage
notes or bonds so insured, and neither the limitations of this
section nor any other law of this State requiring security upon
which loans shall be made, or prescribing the nature, amount
or form of such security, or limiting the interest rates upon
loans, shall be deemed to apply to such insured mortgage loans.

SEC. 2. And be it further enacted, That this Act shall take
effect June 1, 1939.

Approved May 17, 1939,

CHAPTER 169.
(House Bill 229)

AN ACT to repeal and re-enact, with amendments, Section 179
of Article 56 of the Annotated Code of Maryland (1935 Sup-
plement), title "Licenses", sub-title "Motor Vehicles", sub-