1708 LAWS OF MARYLAND. [CH. 985

other classes of securities or types of investment, shall
invest its funds only in such securities to the extent of an
amount equal in value to the minimum assets or surplus
required of such company by the laws of Maryland. In-
vestments equal in value to such an amount and of the kind
or kinds hereinafter prescribed in this section shall at all
times be maintained free and clear from any lien or pledge
other than as impressed upon a deposit with any government
within the United States or upon trusteed assets held in trust
for the security of all its policyholders and creditors. Mini-
mum capital investments of such an insurer shall consist of
the following classes of securities and not less than sixty
per cent of the total amount of the required minimum capital
investments shall consist of the classes specified in sub-para-
graphs (a) and (b) following:

(a) Bonds or other evidences of indebtedness of the United
States of America or of any of its agencies when such obliga-
tions are guaranteed as to principal and interest by the United
States of America.

(b) Bonds, or stocks or other evidences of indebtedness
which are direct obligations of the State of Maryland or of
any county, district or municipality thereof.

(e) Bonds or other evidences of indebtedness which are
direct obligations of any state of the United States.

(d) Mortgage loans or deeds of trust as specified in sub-
paragraphs (a) or (e) of sub-division (6)' of sub-section 3 on
property located in this state.

(e) Ground rents as specified in sub-division (7) of sub-
section 3.

2. RESERVE INVESTMENTS REQUIRED.

(1) After satisfying requirements for minimum capital
investments specified in sub-section 1? any domestic stock or
mutual insurance company or Lloyds Association, other than a
life insurance company or a fraternal benefit association, may
invest its funds in, or otherwise acquire, or loan upon, only the
classes of reserve investments as specified in sub-section 3,
unless it shall at all times have and maintain cash and such
reserve investments (including its minimum capital invest-
ments), free from any lien or pledge, which, when valued in
accordance with the provisions of this Act, shall be at least
equal in amount to fifty per centum of the aggregate amount
of its unearned premium and loss reserves as shown by its
last sworn statement, annual or quarterly, on file with the
Commissioner. The term "lien or pledge" as used in this sub-