1310

LAWS OF MARYLAND

Ch. 463

Annotated Code of Maryland

(1972 Replacement Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A — Insurance Code

96.

Every domestic life insurer must have and continually
keep to the extent of an amount equal to its entire
reserves, as required by this article, invested in any
combination of the following types of assets subject to the
limit, if any, set forth with regard to each type or class
of investment;

(7) Loans secured by first mortgages, or deeds of
trust, on unencumbered 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% 85 PERCENT of the fair market value of
such fee—simple or improved leasehold real estate provided
that [any amount exceeding 66 2/3% 75 PERCENT of the face
FAIR market value of such fee—simple or leasehold real
estate shall not be included 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] 30 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 indebtedness secured by mortgages
or deeds of trust which are guaranteed or insured by an
instrumentality of the United States, pursuant 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 subsection,

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.