1026                           LAWS OF MARYLAND                      [CH. 553

(ii) Bonds, or stocks or other evidences of indebtedness which are
direct obligations of the State of Maryland or of any county, district
or municipality thereof.

(iii) Bonds or other evidences of indebtedness which are direct
obligations of any state of the United States.

(2)   Reserve investments required. After satisfying the require-
ments for minimum capital stock investments as provided in sub-
section (1), a life insurer shall invest and keep invested its funds
(including its minimum capital stock investments) in an amount not
less than 100 per cent of the reserves provided for by this article in
cash or the classes of securities or investments authorized under
Section 96 of this subtitle.

(3)   Capital and reserve investments; liens. A life insurer shall
at all times maintain the minimum capital and reserve investments
required by this section, equal in value to such an amount and of the
classes prescribed, free and clear from any lien or pledge other than
as a deposit as required or permitted by Section 50.

(4)   Residue investments. After satisfying the minimum capital
and reserve investment requirements of this subtitle, any excess
funds of a domestic life insurer may be invested without limitation
in any investments not otherwise prohibited by the provisions of
this subtitle.

96. Life Insurance Reserve Investments.

Every domestic life insurer must have and continually keep to the
extent of an amount equal to its entire reserves, as required by this
article, invested in any combination of the following types of assets
subject to the limit, if any, set forth with regard to each type or
class of investment:

(1)   Cash or deposits in checking or savings accounts, under cer-
tificates of deposit or in any other form in National or State banks
and trust companies.

To the extent that such an investment or account is insured by
the Federal Savings and Loan Insurance Corporation, OR BY THE
MARYLAND SAVINGS-SHARE INSURANCE CORPORATION
an insurer may invest in shares of savings and loan associations or
building and loan associations.

(2)   Interest bearing bonds, notes, certificates of indebtedness,
bills or other direct interest bearing obligations of the United States
of America or of Canada or other interest bearing obligations fully
guaranteed both as to principal and interest by the United States
of America, or by Canada, and obligations of the International Bank
for Reconstruction and Development and obligations of the Inter-
American Development Bank.

(3)   Interest bearing bonds of any state, District of Columbia,
territory or possession of the United States of America, or of any
province of Canada, or of any county, or incorporated city of any
state, District of Columbia, territory or possession of the United
States of America, or any Canadian municipality.

(4)   Interest bearing bonds of any Commission, instrumentality,
authority or political subdivision having legal authority to issue the