1716 LAWS OF MARYLAND. [CH. 985

under the public housing law of this State, to the extent and
upon such conditions as may be authorized by the Commis-
sioner, provided all of the stock of such housing company has
been or is to be originally issued to one or more insurance
companies.,

4. RESIDUE AND SURPLUS FUND INVESTMENTS.

After satisfying the requirements for minimum capital in-
vestments, any domestic stock or mutual insurance company or
Lloyds Association, other than a life insurance company or
fraternal benefit association, which has accumulated and main-
tains reserve investments as required in Sub-section 2, may in-
vest any portion of the remainder of its funds in, or otherwise
acquire or loan upon, any of the classes of investments eligible
under Sub-section 3 and any stock or shares, bonds or obliga-
tions, including voting trust certificates, certificates of deposit,
interim receipts, and other similar instruments representing
stock or shares, bonds or obligations eligible hereunder, or in
investments in loans made by banks or trust companies secured
by the assignment of cash surrender values of at least equal
amount, in life insurance policies issued by life insurance
companies licensed to do business in the State of Maryland,
except the following prohibited investments:

(1) Obligations, stock or other securities of any corporation,
association or other business unit which is insolvent at the
time of such acquisition or loan, except securities eligible for
investment under Sub-section 3.

(2) Any mortgage or deed of trust, or any real property
or any interest therein, which does not come within the class
of investments specified in Sub-divisions (6) and (7). of Sub-
section 3.

(3) Any capital stock of the investing insurer.

(4) Stocks, bonds or other securities issued by any corpora-
tion, if a majority of the outstanding stock of such corpora-
tion, or a majority of the stock having voting powers) of such
corporation is, or will be after such acquisition, directly or
indirectly owned by such insurer or by or through one or more
of its officers or directors holding the same, for the benefit of
such insurer or of its stockholders, or owned by a parent cor-
poration or subsidiary of such insurer, parent corporation or
subsidiary thereof, or owned by any combination of the in-
surer, its parent corporation, its subsidiaries or its stock-
holders. Nothing contained in this paragraph shall be deemed
to prevent any investment in the stock, bonds or other securi-