Ch. 11

LAWS OF MARYLAND

The stylistic errors occurred in Ch. 553 of the Acts
of 1963.

The stylistic errors were noted by the professional
staff of the Legislative Division of the Department of
Legislative Reference.

106.

In addition to investments excluded pursuant to other
provisions of this article, an insurer shall not directly or
indirectly invest in or lend its funds upon the security of the
following:

(1)  Obligations, stock or other securities of any
corporation, association or other business unit which is
insolvent at the time of such acquisition or loan, except
securities eligible for investment under § 104 OF THIS SUBTITLE.

(2)  Any mortgage or deed of trust, or any real
property or any interest therein, which does not come within the
class of investments specified in § 104 (6) and (7) OF THIS
SUBTITLE.

(3)  Any capital stock of the investing insurer.

(4)  Stocks, bonds or other securities issued by any
corporation, if a majority of the outstanding stock of such
corporation, or a majority of the stock having voting powers of
such corporation is, or will be after such acquisition, directly
or indirectly owned by such insurer or by or through one or more
of its officers or directors holding the same, for the benefit of
such insurer or of its stockholders, or owned by a parent
corporation or subsidiary of such insurer, parent corporation of
subsidiary thereof or owned by any combination of the insurer,
its parent corporation, its subsidiaries or its stockholders.
Nothing contained in this paragraph shall be deemed to prevent
any investment in the stock, bonds or other securities of a
corporation organized exclusively to hold and operate real estate
acquired by such insurer in accordance with and subject to the
provisions of § 104 OF THIS SUBTITLE, nor an investment in the
stock of another insurer nor an investment in stocks, bonds or
other securities of any corporation which is engaged exclusively
in a kind of business properly incidental to the insurance
business of such insurer, including an investment in securities
of any corporation engaged in the financing of insurance
premiums, or in such incidental business and the business of
holding and operating real estate.                                               

(5)  Stocks, bonds or other securities issued, by a
corporation, other than an insurer, if a majority of the stock
having voting powers of such issuing corporation is owned

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