J. MILLARD TAWES, Governor                      319

96.

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:

(7) Loans secured by first mortgages, or deeds of trust, on
unencumbered fee-simple or improved leasehold real estate in the
District of Columbia or in any state of the United States of America
or province of Canada, to an amount not exceeding [66⅔%] 75%
of the fair market value of such fee-simple or improved leasehold
real estate provided that any amount exceeding 66⅔% of the face
market value of such fee-simple or leasehold real estate shall not be
included in reserve and capital investments [except that if] unless
such fee-simple or leasehold real estate is primarily improved by a
residence and such loans provide for amortization of principal, such
amortization payments to be made annually or more frequently, over
a period of not more than twenty-five years, [such loans may be
made to an amount not exceeding 75% of the fair market value of
such fee-simple or leasehold real estate.] Whenever such loans are
made upon fee-simple, or leasehold real estate which is improved by
a building or buildings, the said improvements shall be insured
against loss by fire, and the fire insurance policies shall contain the
New York or Massachusetts standard mortgage clause or one equiva-
lent thereto and shall be delivered to the mortgagee as additional
security for the said loans; and upon bonds, notes or other evidence
of indebtedness secured by mortgages or deeds of trust which are
guaranteed or insured by an instrumentality of the United States,
pursuant to acts of Congress, as heretofore and hereafter amended,
known as the National Housing Act; Servicemen's Readjustment
Act of 1944; Bankhead-Jones Farm Tenant Act; and neither the
limitations of this section nor any other law of this State requiring
security upon which loans shall be made, or prescribing the nature,
amount or forms of such security, or limiting the interest rates upon
loans, shall be deemed to apply to such insured or guaranteed mort-
gage loans. A policy insuring against loss by fire and other coverages
shall be deemed to meet the requirements of this subsection.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1965.

Approved April 8, 1965.

CHAPTER 293
(House Bill 1086)

AN ACT to repeal and re-enact, with amendments, Section 31 of
Article 26 of the Annotated Code of Maryland (1964 Supplement),
title "Courts," subtitle "Circuit Courts for the Counties—Court
Stenographers," adding Caroline County to those counties which
require payment of court costs in advance of filing an action.