1712 LAWS OF MARYLAND. [CH. 985

idated earnings statements covering such portion of such
period and giving effect to all stocks or shares outstanding,
and all fixed charges existing, immediately after such acquisi-
tion, or such reorganization.

(3) PREFERRED OR GUARANTEED STOCKS OR SHARES. Pre-
ferred or guaranteed stocks or shares of any solvent institu-
tion, created or existing under the laws' of the United States
or of any state, district or territory thereof, if all of the prior
obligations, and prior preferred stocks, if any, of such institu-
tion at the date of acquisition by such insurer are eligible as
investments under this Article; and if qualified under para-
graph (a) or paragraph (b) following:

(a) Preferred stocks or shares shall be deemed qualified if
both of the following requirements are met: (a-1) the net earn-
ings of such institution available for its fixed charges for a
period of five fiscal years next, preceding the date of acquisi-
tion by such insurer shall have averaged per year not less than
one and one-half times the sum of its average annual fixed
charges, if any, its average annual maximum contingent inter-
est if any, and its average annual preferred dividend require-
ments applicable to such period; and (a-2) during each of the
last two years of such period such net earnings shall have been
not less than one and one-half times the sum of its fixed
charges, contingent interest and preferred dividend require-
ments for such year. The term "preferred dividend require-
ments" shall be deemed to mean cumulative or non-cumulative
dividends whether paid or not.

(b) Guaranteed stocks or shares shall be deemed qualified
if the assuming or guaranteeing institution meets the require-
ments of paragraph (b) of sub-division (2) of sub-section 3
construed so as to include as a fixed charge the amount of
guaranteed dividends of such issue or the rental covering the
guarantee of such dividends.

(4) (a) TRUSTEES OR RECEIVERS' OBLIGATIONS. Certificates,
notes or other obligations issued by trustees or receivers of any
institution created or existing under the laws of the United
States or of any state, district or territory thereof, which, or
the assets of which, are being administered under the direction
of any court having jurisdiction, if such obligation is ade-
quately secured as to principal and interest.

(b) Equipment trust obligations or certificates which are
adequately secured or other adequately secured instruments
evidencing an interest in transportation equipment wholly
or in part within the United States and a right to receive
determined portions of rental, purchase or other fixed obliga-