HERBERT R. O'CONOR, GOVERNOR. 1089

of Maryland (1939 Edition), title "Insurance", sub-title "Gen-
eral Provisions", be and the same is hereby repealed and re-
enacted, with amendments, to read as follows:

25. Investment of Reserves. Every stock and mutual in-
surance company and Lloyds Association, domestic or foreign,
authorized to do business in this State, must have and contin-
ually 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, currency 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 on
deposit in a national or State bank or trust company, or on
deposit with or in the shares of Federal Savings and Loan As-
sociations not in excess of five thousand dollars ($5, 000)
in any such Federal Savings and Loan Association 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 pur-
poses 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
debentures issued by the Federal Housing Administrator; or
in securities of national mortgage associations; provided, how-
ever, 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; provided that the commissioner
may, in his discretion, grant such extension or extensions, not
exceeding five years each, of the period within which any such
real estate may be held, that, in his judgment, may be necessary
to serve the best interests of the company and of its policy-
holders; or it may be invested in ground rents, or loaned upon
first mortgages on unincumbered fee simple, or improved lease-
hold, real estate, in this or any other State of the United States,
to an amount not exceeding sixty-six and two-thirds per cent of
the fair market value of such fee simple, or improved lease-
hold, 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, 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,