1030                           LAWS OF MARYLAND                      [CH. 553

funds as shown by the insurer's annual statement as of the December
31 next preceding date of acquisition of the investment by the
insurer, or as shown by a current financial statement filed with the
Commissioner reflecting the result of merger or consolidation with
another insurer, bulk reinsurance, or change in capitalization.

100.    Authorization of Investment.

An insurer shall not make any investment or loan unless the same
is authorized or approved by the insurer's board of directors or by
a committee authorized by such board and charged with the super-
vision or making of such investment or loan. The minutes of any
such committee shall be recorded and regular reports of such com-
mittee shall be submitted to the board of directors.

101.    Limitation of Investments.

(1)   Except as more specifically provided in this subtitle, no
insurer shall have more than ten per cent of its total admitted
assets invested in, or loaned upon the securities of any one
person; but this restriction shall not apply to the classes of govern-
mental obligations (including those eligible under section 104 (6)
(iii)) eligible for minimum capital investments of such insurer nor to
investments in stocks of other insurers.

(2)   No insurer shall hereafter acquire any real property of the
kind or kinds specified in section 104 (8) (i) and (ii) if the value of
such real property, together with the value of all such real property
then held by it, exceeds ten per cent of its total admitted assets.

102.    Minimum Capital Investments.

Before investing any of its funds in any other classes of securities
or types of investments, every insurer shall, to the extent of an
amount equal in value to the minimum capital stock and surplus
required of a domestic stock insurer authorized to transact the same
kind or kinds of insurance business, invest its funds only in securi-
ties of the classes described in this section. Investments equal in
value to such an amount and of the types hereinafter prescribed in
this section shall at all times be maintained free and clear from any
lien or pledge other than as impressed upon a deposit with any gov-
ernment within the United States or upon trusteed assets held in
trust for the security of all its policyholders and creditors. Minimum
capital investments of such an insurer shall consist of the following
classes of securities and not less than sixty per cent of the total
amount of the required minimum capital investments shall consist of
the classes specified in paragraphs (1) and (2) following:

(1)   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.

(2)   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.

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

(4)   Mortgage loans or deeds of trust as specified in section 104
(6) (i) and (ii), on property located in this State.

(5)   Ground rents as specified in section 104 (7).