J. MILLARD TAWES, Governor                     1025

(1)   Any investment or security which is found by the Commis-
sioner to be designed to evade any prohibition of this article.

(2)   Issued shares of its own capital stock, except for the purpose
of mutualization under subtitle 17, or in connection with a plan
approved by the Commissioner for purchase of such shares by the
insurer's employees or agents.

(3)   No loan may be made, directly or indirectly, to any officer or
director of the insurer, except policy loans or 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.

92.    One Person Investment Limitation.

Any insurer shall not, except with the Commissioner's consent,
have at any one time any combinations of investments in or loans
upon the security of the obligations, property, or securities of any
one person aggregating an amount in excess of ten (10%) per cent
of the insurer's admitted assets. This restriction shall not apply to
general obligations of the United States of America or of the Gov-
ernment of Canada or of any state, or include policy loans made
under this subtitle.

93.    Policy Loans.

A life insurer may lend to its policyholder on the policy as col-
lateral security, any sum not exceeding the reserve on the policy, and
such loans shall be an eligible reserve investment of the insurer.

94.    Foreign Securities.

A life insurer which is authorized to transact business in a foreign
country or which has outstanding insurance or reinsurance con-
tracts on risks located in a foreign country may invest in such assets,
or otherwise acquire a loan upon securities and investments, in such
foreign country, as are substantially of the same kind, class and
quality as those eligible for investment under the provisions of this
subtitle; provided that the aggregate amount of such investments
and of the cash or currency of such foreign country which is held
by any insurer shall at no time exceed one and one-half times the
amount of its reserves and other obligations under such contracts or
the amount which such insurer is required by law to invest in such
country, whichever is greater. Canadian securities and investments
eligible for investment under other provisions of this subtitle are
not subject to this section.

95.    Classes of Investment.

(1) Minimum capital stock. Before investing in other classes or
types of investment a life insurer shall invest, and shall thereafter
maintain invested, funds in not less an amount than the minimum
paid-in capital stock required under this article for authority to
engage in the life insurance business only in cash and securities of
the following classes:

(i) Bonds or other evidences of indebtedness of the United States
of America or of any of its agencies when such obligations are guar-
anteed as to principal and interest by the United States of America.