Marvin Mandel, Governor                            989

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 96 of Article 48A of the Annotated Code of Maryland
(1968 Replacement Volume) be and the same is hereby repealed
and re-enacted, with amendments, to read as follows:

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 hereinafter
defined, [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 in-
vest 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
same, of the United States of America, Canada, 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 of any province of Canada.

(5)  Interest bearing bonds, notes or other interest bearing ob-
ligations of any corporation organized under the laws of the United
States of America or of Canada or province thereof, or under the
laws of any state, District of Columbia, territory or possession of
the United States of America. Equipment trust obligations or cer-
tificates or other secured instruments evidencing an interest in
transportation or other equipment wholly or in part within the
United States of America or Canada and a right to receive deter-
mined portions of rental, purchases or other fixed obligatory pay-
ments for the use or purchase of such transportation or other
equipment.

(6)  Dividend paying stocks or shares of any corporation created
or existing under the laws of the United States of America, Canada
or province thereof, or of any state, District of Columbia, territory