1720 LAWS OF MARYLAND. [CH. 985

mon stock issued and outstanding. Notwithstanding the fore-
going provisions, an insurer may, at its option, value its hold-
ings of stock in a subsidiary insurance company in an amount
not less than acquisition cost if such acquisition cost is less
than the value determined as hereinbefore provided.

(3) Real estate acquired by foreclosure or by deed in lieu
thereof, in the absence of a recent appraisal deemed by the
Commissioner to be reliable, shall not be valued at an amount
greater than the unpaid principal of the defaulted loan at the
date of such foreclosure or deed, together with any taxes and
expenses paid or incurred by such insurer at such time in
connection with such acquisition (but not including any un-
collected interest on such loan), and the cost of additions or
improvements thereafter made by such insurer and any
amount or amounts thereafter paid by such insurer on any
assessments levied for improvements in connection with the
property.

(4) Purchase money mortgages shall be valued in an
amount not exceeding the acquisition cost of such real prop-
erty or ninety per cent of the value of such real property,
whichever is less.

(5) The stock of a subsidiary of an insurer shall be valued
on the basis of the value of only such of the assets of such
subsidiary as would constitute lawful investments for the
insurer if acquired or held directly by the insurer.

9. INTEREST, DIVIDENDS AND RENT.

In any determination of the financial condition of every
stock and mutual insurance company and Lloyds Association,
domestic or foreign, other than a life insurance company or a
fraternal benefit association, authorized to do business in this
State, amounts due to such insurer may be allowed as an ad-
mitted asset of such insurer as follows:

(1) Interest due or accrued on any bond or evidence of
indebtedness qualifying as an admitted asset which is not in
default and which is not valued on a basis including accrued
interest.

(2) Declared and unpaid dividends on stocks and shares,
unless such amount has otherwise been allowed as an admitted

asset.

(B) Interest due or accrued upon a collateral loan in an
. amount not to exceed one year's interest thereon.