936 LAWS OF MARYLAND. [CH. 692

estate, and in addition may, Avith the written approval of the
Insurance Commissioner, acquire other real estate if necessary
or convenient for the purpose of enhancing the sale value of
real estate previously acquired or held by it pursuant to the
provisions of this sub-paragraph. Real estate sold under con-
tract of sale, where title is retained in the company, shall be
classified as real estate.

1. Interest, rents or other fixed income due and accrued on
any of the investments named in sub-paragraphs a, b, e, d, e,
g, h, i, j and k.

m. To the extent necessary to satisfy the investment re-
quirements as to reserves and capital, no investment or loan
shall be made on any of the securities mentioned in this Act,
which are in default as to principal or interest or that has
passed its dividend at the last preceding dividend date at the
time such investment is made.

(2) GENERAL PROVISIONS.

a. The entire reserves of a domestic life insurance company,
as used in this section, shall be the sum of:

Net present value of all outstanding policies in force (less
reinsurance); reserves for accidental death benefits and total
and permanent disability benefits (less reinsurance); present
value of supplementary contracts and including dividends left
with the Company to accumulate at interest; liability on
policies cancelled and not included in "net reserve" upon which
a surrender value may be demanded, and policy claims and
losses outstanding, and reserves for taxes and expenses due or
accrued; less amount of net uncollected and deferred premiums.

b. No investment or loan, except loans made on the Com-
pany's own policies, shall be made by any domestic insurer
unless the same be authorized or approved by the Board of
Directors, or by a committee thereof charged with the duty of
supervising or making such investment or loan. The minutes
of any such committee shall be recorded and a report shall be
submitted to the Board of Directors.

e. No loan may be made, directly or indirectly, to any
officer or director of the Company, except loans made on the
company's own policies or on a bona fide mortgage loan on the
residence for his habitation of such officer or director, which
mortgage loan shall be duly approved or ratified by the Board
of Directors.

d. When any of the investments mentioned in this section
and held by any domestic insurer are of doubtful value, or
without ascertainable value on a public exchange, unless the