990                              Laws of Maryland                       Ch. 418

or possession of the United States of America; provided, that, to
the extent necessary to satisfy the reserve requirements of this
subtitle, no insurer may be allowed more than 10% of its total
admitted assets in preferred stocks, nor more than 10% of its total
admitted assets in common stocks; and further provided, that no
insurer may be allowed more than 5% of its total admitted assets
in the stock or shares of any one corporation.

(7)   Loans secured by first mortgages, or deeds of trust, on un-
encumbered 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 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 in-
cluded in reserve and capital investments 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. 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 equivalent
thereto and shall be delivered to the mortgagee as additional security
for the said loans; and upon bonds, notes or other evidence of in-
debtedness secured by mortgages or deeds of trust which are guar-
anteed or insured by an instrumentality of the United States, pur-
suant 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
mortgage loans. A policy insuring against loss by fire and other
coverages shall be deemed to meet the requirements of this subsec-
tion. (Amended, 1965, ch. 292.)

(8)  Ground rents in the District of Columbia or any state of the
United States of America, provided, that in the case of unexpired
redeemable ground rents the premiums paid, if any, shall be amor-
tized over the period between date of acquisition and earliest re-
demption date or charged off at any time prior to redemption date;
and in the case of expired redeemable ground rents the premium
paid, if any, shall be charged off at the time of acquisition. Redemp-
tion ground rents purchased at a discount shall be carried at an
amount not greater than the cost of acquisition.

(9)   Collateral loans secured by pledge of any security named
in subsections (1), (2), (3), (4), (5), (6), (7), and (8); provided
that the current market value of such pledged securities shall be at
all times during the continuance of such loans at least 10% more
than the unpaid balance of the amount loaned on them. All such
loans shall be subject to the power of the insurer to terminate them
in case of the depreciation of the pledged securities below this
limit.