J. MILLARD TAWES, Governor                     1037

a corporation organized exclusively to hold and operate real estate
acquired by such insurer in accordance with and subject to the pro-
visions of section 104, nor an investment in the stock of another
insurer nor an investment in stocks, bonds or other securities of
any corporation which is engaged exclusively in a kind of business
properly incidental to the insurance business of such insurer, includ-
ing an investment in securities of any corporation engaged in the
financing of insurance premiums, or in such incidental business and
the business of holding and operating real estate.

(5)   Stocks, bonds or other securities issued by a corporation,
other than an insurer, having more than twenty per cent of its assets
invested in stocks of insurers directly or indirectly including pro-
portionate equities or interest in stocks of insurers held through any
intermediate subsidiary or subsidiaries of such issuing corporation.

(6)   Stocks, bonds or other securities issued by a corporation,
other than an insurer; if a majority of the stock having voting
powers of such issuing corporation is owned directly or indirectly
by or for the benefit of one or more officers or directors of such
insurer.

(7)   Foreign investments, meaning stocks or shares, bonds or obli-
gations of any person or governmental or business unit of or in a
foreign country or any subdivision thereof, except such as conform
substantially with the limitations imposed by this section upon like
domestic investments; but the aggregate amount of foreign invest-
ments held by such insurer under this subsection and under Section
104 (9) shall not exceed ten per cent of its total admitted assets or one
and one-half times the amount of its reserves and other obligations
under such contracts or the amount necessary to enable it to transact
insurance business in such foreign country, directly or through a sub-
sidiary corporation, whichever shall be greater.

(8)   Any investment which is found by the Commissioner to be
against public policy or designed to evade any prohibition of this
section.

107.    Disposal or Reduction of Investments Unlawfully Acquired.

Every insurer shall dispose of any investments acquired in viola-
tion of the law in force at the date of such acquisition, and in any
determination of the financial condition of any such insurer, the
amount of the value of such investments, if wholly ineligible, or the
amount of the value thereof in excess of any limitation prescribed
by this subtitle, shall be deducted as a nonadmitted asset of such
insurer.

8. ADMINISTRATION OF DEPOSITS

108.    Deposits of Insurers.

(a) The State Treasurer of Maryland shall accept and hold in trust,
when made through the Commissioner, deposits of securities or funds
by insurers as follows:

(1)   Deposits required for a certificate of authority to engage in
the insurance business in Maryland.

(2)   Deposits of domestic, foreign, or alien insurers when made
pursuant to the laws of other states, provinces, and countries as