Marvin Mandel, Governor                         991

(10)  Unencumbered real estate for the office and business pur-
poses only of said insurer, except as authorized by subsections
(7) and (8); and also property for parking accommodations, with
or without charge, primarily for the use of employees or customers
of said insurer; provided, however, that the value of all real estate
of such kind and for such purposes, however acquired, shall not
exceed 20 % of the insurer's total admitted assets. Any insurer shall
have the right to purchase and hold real estate under a foreclosure of
its own mortgages or a deed in lieu of mortgage foreclosure for
a period of not more than five years; provided, however, the Com-
missioner may in his discretion, grant an extension or extensions
not exceeding five years each, of the period within which such
real estate may be held, that in his judgment may be necessary
to serve the best interest of the insurer and its policyholders;
provided, further, however, before the Commissioner shall have
refused to grant an extension or extensions not exceeding five years
each, of the period within which such real estate may be held, the
value thereof shall be ascertained by appraisal and if found to be
equal to or in excess of the book value of such real estate, then he
shall grant an extension or extensions not exceeding five years each,
of the period in which such real estate may be held. An insurer
may, with the written approval of the Commissioner, acquire prop-
erty in part payment of the consideration on the sale of real estate
owned by it if each such transaction shall effect a net reduction in
the insurer's investment on real estate, and in addition may, with
the approval of the Commissioner, acquire other real estate if neces-
sary or convenient for the purpose of enhancing the sale value of
real estate previously acquired or held by it pursuant to the pro-
visions of this subsection. Real estate sold under contract of sale,
where title is retained in the insurer, shall be classified as real estate.

(11)   Interest, rents or other fixed income due and accrued on
any of the investments named in subsections (1), (2), (3), (4),
(5), (7), (8), (9), and (10), and upon policy loans of the insurer.

(12)   Such unencumbered, fee-simple or improved leasehold real
estate other than property to be used primarily for mining, recrea-
tional, amusement, hotel or club purposes, as may be acquired as
an investment for the production of income, or as may be acquired
to be improved or developed for any such investment purposes,
subject to the following conditions and limitations:

(i) The cost of each parcel of real or leasehold property so ac-
quired under the authority of this subsection, including the cost
to the insurer of the improvement or development thereof, when
added to the book value of all other real or leasehold property then
held by it pursuant to this subsection, shall not exceed five per
cent of its admitted assets and when added to the value of all real
estate however acquired or held for investment, including home of-
fice and branch office properties, shall not exceed 20% of the in-
surer's total admitted assets; and

(ii) The cost of each parcel of real or leasehold property acquired
under the authority of this subsection, including the cost to the in-
surer of the improvement or development thereof, shall not exceed
one per cent of the insurer's admitted assets. Except as otherwise
required by the Commissioner, each parcel or real or leasehold
property held by an insurer under this section shall be valued on
its books as of the 31st day of December of each year at an amount