HERBERT E, O'CONOR, GOVERNOR. 1713

tory payments for the use or purchase of such transportation
equipment.

(5) ACCEPTANCES AND BILLS OF EXCHANGE. Bank and bank-
ers' acceptances and other bills of exchange of the kind and
maturities made eligible, pursuant to law, for purchase in the
open market by federal reserve banks.

(6) MORTGAGE LOANS, (a) Bonds or evidences of indebted-
ness other than those described in Subdivision (2) of Sub-
section 3 which are secured by first mortgages or deeds of
trust upon unencumbered fee simple or improved leasehold
real property located in the United States. Real property
shall not be deemed to be encumbered within the meaning of
this section, by reason of the existence of instruments reserv-
ing mineral, oil or timber rights, rights of way, sewer rights,
rights in walls, nor by reason of any liens for taxes or assess-
ments not yet due, nor by reason of building restrictions or
other restrictive covenants, nor when such real property is
subject to lease under which rents or profits are reserved to
the owner, if in any event the security for such loan is a first
lien upon such real property and if there is no condition or
right of re-entry or forfeiture, under which such lien can be
cut off, subordinated or otherwise disturbed. No such mort-
gage loan or loans made or acquired by an insurer on any one
property shall, at the time of investment by the insurer, ex-
ceed two-thirds of the value of the real property securing the
same. No such mortgage loan or loans shall be made or ac-
quired by an insurer except after an appraisal made by an
appraiser for the purpose of such investment. No such mort-
gage loan made or acquired by an insurer which is a participa-
tion or a part of a series or issue secured by the same mort-
gage or deed of trust shall be a lawful investment under this
paragraph unless the entire series or issue which is secured
by the same mortgage or deed of trust is held by such insurer
or unless the insurer holds a senior participation in such
mortgage or deed of trust giving it substantially the rights
of a first mortgagee. Except as otherwise provided in this
Act, no domestic stock or mutual insurance company or Lloyds'
Association, other than a life insurance company or a fraternal
benefit association, shall invest in or loan upon the security of
any one property more than twenty-five thousand dollars or
more than two per centum of its total admitted assets, which-
ever is the greater. In no event shall the. total investments of
any such insurer in the kinds permitted under this sub-
division exceed forty per centum of its total admitted assets.

(b) Purchase money mortgages or like securities received