Ch. 36

1995 LAWS OF MARYLAND

(2)     ANY TAXES AND EXPENSES THAT THE INSURER PAYS OR INCURS AT
THE DATE OF THE FORECLOSURE OR DEED IN CONNECTION WITH THE
ACQUISITION, EXCEPT FOR UNCOLLECTED INTEREST ON ANY LOAN;

(3)     THE COST OF A LATER ADDITION OR IMPROVEMENT BY THE
INSURER; AND

(4)     AN AMOUNT THAT THE INSURER PAYS LATER ON ASSESSMENTS
LEVIED FOR IMPROVEMENTS IN CONNECTION WITH THE PROPERTY.

(E) PURCHASE-MONEY MORTGAGE.

PURCHASE-MONEY MORTGAGES SHALL BE VALUED IN AN AMOUNT NOT
EXCEEDING THE LESSER OF:

(1) THE ACQUISITION COST OF THE REAL PROPERTY; OR

(2)     90% OF THE VALUE OF THE REAL PROPERTY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 84(1) through (5).

In subsection (a)(2)(ii) of this section, the phrase "to the Commissioner" is
added to state expressly to whom a statement or report of the financial
condition of a special investment reserve is to be sent.

In subsection (a)(3)(i) of this section, the former reference to securities that
an insurer owns "wholly or partly" is deleted as surplusage.

In subsection (b)(1)(i) and (ii) of this section, the phrase "of the other
insurer" is added for clarity.

Defined terms: "Authorized insurer" § 1-101
"Commissioner" § 1-101
"Insurer" § 1-101

5-402. BONDS.

(A)     SCOPE OF SECTION.

THIS SECTION APPLIES TO A BOND OR OTHER EVIDENCE OF INDEBTEDNESS
THAT:

(1)     HAS A FIXED TERM AND RATE OF INTEREST;

(2)      IS HELD BY AN INSURER;

(3)     IS AMPLY SECURED; AND

(4)      IS NOT IN DEFAULT AS TO PRINCIPAL OR INTEREST.

(B)     METHODS OF VALUATION.

(1) A BOND OR OTHER EVIDENCE OF INDEBTEDNESS SUBJECT TO THIS
SECTION MAY BE VALUED:

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