HERBERT R. O'CONOR, GOVERNOR. 933

to follow immediately after Section 24 and to be known as
Section 25, relating to investment of capital, surplus and
other funds of life insurance companies.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 25 of Article 48A of Flack's Annotated
Code of Maryland (1939 Edition), as amended by Chapter 634
of the Acts of 1941, title "Insurance", sub-title, "General Pro-
visions", be and same is hereby repealed.

SEC. 2. Be it further enacted. That a new section be and the
same is hereby added to Article 48A of Flack's Annotated Code
of Maryland (1939 Edition), title "Insurance", sub-title "Gen-
eral Provisions", to follow immediately after Section 24 and to
be known as Section 25, and to read as follows:

25. INVESTMENTS — LIFE. (1) Every domestic stock and
mutual life insurance company must have and continually keep
to the extent of an amount equal to its entire reserves, as
hereinafter defined, and its capital, if any, invested in:

a. Coin or currency of the United States of America, on
hand or on deposit in a National or State bank or trust com-
pany, or not in excess of Five Thousand Dollars (f5, 000, 00)
in any one Federal Savings and Loan Association or in any
such Building or Homestead Association insured by the Fed-
eral Savings and Loan Insurance Corporation.

b. Interest bearing bonds, notes, certificates of indebted-
ness, bills or other direct interest bearing obligations of the
United States of America or of the Dominion of Canada or
other interest bearing obligations fully guaranteed both as to
principal and interest by the United States of America, or by
the Dominion of Canada, which if in default as to principal
or interest shall be carried at market value.

e. Interest bearing bonds of any State, District of Colum-
bia, Territory or possession of the United States of America,
or of any Province of the Dominion of Canada, or of any
County, or incorporated City of any State, District of Colum-
bia, Territory or possession of the United States of America,
which if in default as to principal or interest, shall be carried
at market value.

d. Interest bearing bonds of any Commission, Authority or
political sub-division having legal authority to issue the same,
of any State, District of Columbia, Territory or possession of
the United States of America or of any County or incorporated
City of any State, District of Columbia, Territory or posses-