1308

LAWS OF MARYLAND

Ch. 462

of such kind and for such purposes, however acquired, shall
not exceed [20%] 20 PERCENT 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] 5 years; provided, however, the
Commissioner may in his discretion, grant an extension or
extensions not exceeding [five] 5 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] 5 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] 5 years each, of the period in which such
real estate may be held. An insurer may, with the written
approval of the Commissioner, 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
addition 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. Heal estate sold under contract of sale where
title is retained in the insurer, shall be classified as
real estate.

(12) Such [unencumbered] fee—simple or improved
leasehold real estate other than property to be used
primarily for mining, recreational, 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 acquired 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] 5 percent of its
admitted assets and when added to the value of all real
estate however acquired or held for investment, including
home office and branch office properties, shall not exceed
[20%] 20 PERCENT of the insurer's total admitted assets; and

(ii) The cost of each parcel of real or
leasehold property so acquired under the authority of this
subsection, including the cost to the insurer of the
improvement or development thereof, shall not exceed [one] 1
percent of the insurer's admitted assets. Except as
otherwise required by the Commissioner, each parcel of real
or leasehold property held by an insurer under this section