Marvin Mandel, Governor                           999

(ii) Such property of the insurer as may be customary and neces-
sary to the operation of its branch offices outside the State.

(iii) Securities deposited within a jurisdiction outside of Mary-
land, as a condition of authority to transact business in that jurisdic-
tion, OR SECURITIES DEPOSITED IN CONNECTION WITH
OBTAINING SURETY BONDS.

(iv) Securities held for safekeeping by a bank, or other institution
IN EACH CASE approved by the Commissioner, which is located
within the United States and has a sub-custodial agreement with a
Maryland bank OR CANADA, OR ANY JURISDICTION IN
WHICH THE INSURER IS LICENSED TO DO BUSINESS AND
which has a custodial agreement with the insurer. APPROVED BY
THE COMMISSIONER.

(4) This section shall not prohibit the HOLDING OF FUNDS
OR THE transmission of securities outside this State for the pur-
pose of securing or recording title to such securities or for the
purpose of the sale, LOAN, PURCHASE, REDEMPTION, exchange
or alteration of the provisions of such securities.

(5) NO MORE THAN 15% OF AN INSURER'S ADMITTED
ASSETS SHALL BE KEPT OUTSIDE THE STATE, PURSUANT
TO THIS SECTION, WITHOUT APPROVAL OF THE COMMIS-
SIONER.

(5) (6) The Commissioner may modify or waive the requirements
of this section to the extent he deems justified and not adverse to
the public interest.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1970.

Approved April 28, 1970

CHAPTER 425
(Senate Bill 287)

AN ACT to repeal and re-enact, with amendments, Section 175A of
Article 48A of the Annotated Code of Maryland (1968 Replace-
ment Volume), title "Insurance Code," subtitle "Agents and
Brokers," to make the imposition of a penalty additional as well as
alternative to revocation or suspension.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 175A of Article 48A of the Annotated Code of Mary-
land (1968 Replacement Volume), title "Insurance Code," subtitle
"Agents and Brokers," be and it is hereby repealed and re-enacted,
with amendments, to read as follows:

175A.

In lieu of or in addition to, suspension or revocation of the license
of an agent or broker, the Commissioner may [accept for the first
and second offenses a fine] impose a penalty of not less than $25.00