WM. PRESTON LANE, JR., GOVERNOR. 1339
CHAPTER 564
(House Bill 456)

AN ACT to repeal and re-enact, with amendments, Section 25
Sub-section (1) (k-a) of Article 48A of the Annotated Code
of Maryland (1947 Cumulative Supplement), title "In-
surance", sub-title "General Provisions", relating to In-
vestments of Life Insurance Companies in real estate.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 25 Sub-section (1) (k-a) of Article 48A
of the Annotated Code of Maryland (1947 Cumulative Supple-
ment), title "Insurance", sub-title "General Provisions", be,
and the same is hereby repealed and re-enacted, with amend-
ments, to read as follows:

25. (1) (k-a) Such unencumbered, fee-simple or improved
leasehold real estate other than property to be used primarily
for mining, recreational, amusement, hotel or club purposes,
as may be acquired as an investment for the production of
income, or as may be acquired to be improved or developed
for any such investment purposes, subject to the following
conditions and limitations: (1) The cost of each parcel of
real or leasehold property so acquired under the authority of
this paragraph, including the cost to the company of the im-
provement or development thereof, when added to the book
value of all other real or leasehold property then held by it
pursuant to this paragraph, shall not exceed five percent
of its admitted assets as of the 31st day of December next
preceding, and when added to the value of all real estate
however acquired or held for investment, including home
office and branch office properties, shall not exceed 20% of
the company's total admitted assets; and (2) The cost of
each parcel of real or leasehold property acquired under the
authority of this paragraph, including the cost to the com-
pany of the improvement or development thereof, shall not
exceed one per cent of the company's admitted assets as
of the 31st day of December next preceding. Except as
may be otherwise required by the Commissioner, each par-
cel of real or leasehold property held by the company under
this paragraph, shall be valued on its books as of the 31st
day of December of each year at an amount that will include
a write-down of the cost of such property, including all im-
provement or development costs, at a rate that will average
not less than two percent per annum of such cost for each
year or part thereof, that the property has been so held, and
be it further provided that the admitted values of such prop-
erties shall not exceed their depreciated values.