Marvin Mandel, Governor                         845

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 sub-
section.

(8)    Ground rents in the District of Columbia or any state of
the United States of America, provided, that in the case of unex-
pired redeemable ground rents the premiums paid, if any, shall be
amortized over the period between date of acquisition and earliest
redemption date or charged off at any time prior to redemption
date; and in the case of expired redeemable ground rents the pre-
mium paid, if any, shall be charged off at the time of acquisition.
Redemption 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 the case of the depreciation of the pledged securities below
this limit.

(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 Commissioner 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 exten-
sions 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 Commis-
sioner, acquire property 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 in real estate, and in addi-
tion may, with the approval of the Commissioner, acquire other real
estate if necessary or convenient for the purpose of enhancing the
sale value of real estate previously acquired or held by it pursuant
to the provisions of this subsection. Real estate sold under contract
of sale where title is retained in the insurer, shall be classified as
real estate.