698                              Laws of Maryland                       Ch. 300

and engaged solely in bona fide educational or religious activities,
or to any hospital in the State which is operated in conjunction
with an accredited medical school, which shall have been in active
operation in this State for at least ten years prior thereto and which
shall have been granted exemption from federal income taxation
under the provisions of Section 501 of the Federal Internal Revenue
Code of 1954, provided, however, that such special permit shall be
in effect only so long as such educational or religious organization
or hospital shall be exempt from federal taxation under the provi-
sions of Section 501 of the Federal Internal Revenue Code of 1954.
Such permit shall authorize such educational or religious organiza-
tion or hospital to receive gifts of money or other property condi-
tional upon, or in consideration of, its agreement to pay an annuity
to the donor or his nominee, and to make and carry out such annuity
agreement.

(b)  Every such educational or religious organization or hospital
issuing annuities under such permit shall have and maintain admitted
assets at least equal to the sum of adequate reserves on its out-
standing annuity agreements as indicated by an annual report which
shall be submitted to the Commissioner within ninety (90) days
after the termination of such organization's fiscal years. Such annual
reports shall be treated as confidential by the Commissioner and
shall not be available for public inspection. In determining the
reserves of any such organization on outstanding annuity agree-
ments a deduction shall be made for all or any portion of an annuity
risk which is reinsured by a life insurance company authorized to
do business in this State.

(c)  No such educational or religious organization or hospital shall
make or issue in this State any annuity agreement unless or until it
has obtained from the Commissioner a permit issued in accordance
with the provisions of this section. If the Commissioner finds, after
notice and hearing, that any such organization, having such a special
permit, has failed to comply with the requirements of this section or
is not exempt from federal income taxation under the provisions of
Section 501 of the Federal Internal Revenue Code of 1954, he may
revoke or suspend such permit or he may order such organization
to cease making any new annuity contracts until such requirements
have been satisfied. In case of such revocation or suspension, out-
standing annuity contracts shall remain in full force and effect. The
action of the Commissioner in revoking or suspending any such per-
mit or in making any such order shall be subject to judicial review
as provided in this Article.

(d)   Every such educational or religious organization or hospital
issuing annuities under special permit from the Commissioner shall
be exempt, otherwise than as provided in this section, from the
provisions of this Article with respect to such activity, and no law
enacted hereafter shall apply to them unless they be expressly desig-
nated therein.

(e)  Every educational or religious organization or hospital may,
however, other than by annuity contract, agree to accept conditional
donations and to pay to the donor or his nominee a specified return
established with reference to the actual net earnings of the particu-
lar donation or with reference to the actual or estimated earnings of
a specified fund of the donee organization and in so doing, every
such educational or religious organization or hospital shall be exempt