1710 LAWS OF MARYLAND. [CH. 985

sion or public instrumentality of one or more of the foregoing,
if, by statutory or other legal requirements applicable there-
to, such obligations are payable, as to both principal and in-
terest, from taxes levied or by such law required to be levied
upon all taxable property or all taxable income within the
jurisdiction of such governmental unit or from adequate spe-
cial revenues pledged or otherwise appropriated or by such
law required to be provided for the purpose of such payment,
but not including any obligations payable solely out of special
assessments on properties benefited by local improvements.

(2) CORPORATE OBLIGATIONS. Obligations, other than those
eligible for investment under sub-division (6), issued, assumed
or guaranteed by any solvent institution created or existing
tinder the laws of the United States or of any state, district
or territory thereof, which are not in default as to principal
or interest, and which are qualified under any of the follow-
ing paragraphs:

(a) Obligations which are secured by adequate collateral
security and bear fixed interest and if during each of any
three, including the last two, of the five fiscal years next pre-
ceeding the date of acquisition by such insurer, the net earn-
ings of the issuing, assuming or guaranteeing institution
available for its fixed charges, as hereinafter defined, shall
have been not less than one and one-quarter times the total
of its fixed charges for such year, or obligations which, at the
date of acquisition by such insurer, are adequately secured
and have investment qualities and characteristics wherein
the speculative elements are not predominant. In determin-
ing the adequacy of collateral security, not more than one-
third of the total value of such required collateral shall con-
isist of stock other than stock meeting the requirements of
sub-division (3).

(b) Fixed interest bearing obligations, other than those
described in paragraph (a) if the net earnings of the issuing,
assuming or guaranteeing institution available for its fixed
charges for a period of five fiscal years next preceding the
date of acquisition by such insurer shall have averaged per
year not less than one and one-half times its average annual
fixed charges applicable to such period and if during the last
year of such period such net earnings shall have been not
less than one and one-half times its fixed charges for such
year.

(e) Adjustment, income or other contingent interest obliga-
tions if the net earnings of the issuing, assuming or guaran-
teeing institution available for its fixed charges for a period
of five fiscal years next preceding the date of acquisition by