3792

LAWS OF MARYLAND

Ch. 728

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 85 percent of the fair market value of such
fee-simple or improved leasehold real estate provided that
any amount exceeding 75 percent of the 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 OR IS FARM PROPERTY USED FOR FARMING PURPOSES IF
THE LOAN AMOUNT ON ANY ONE FARM PROPERTY DOES NOT EXCEED
$500,000, 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 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, 1982.

Approved June 1, 1982.

CHAPTER 729
(House Bill 1558)