PARRIS N. GLENDENING, Governor                                   Ch. 36

(I)       IF PURCHASED AT PAR, AT THE PAR VALUE; OR

(II)     IF PURCHASED ABOVE OR BELOW PAR:

1.        ON THE BASIS OF THE PURCHASE PRICE ADJUSTED TO
BRING THE VALUE TO PAR AT MATURITY AND TO YIELD IN THE MEANTIME THE
EFFECTIVE RATE OF INTEREST AT WHICH THE PURCHASE WAS MADE; OR

2.        ACCORDING TO ANOTHER ACCEPTED METHOD OF
VALUATION THAT THE COMMISSIONER APPROVES.

(2)      THE PURCHASE PRICE MAY NOT BE VALUED AT A HIGHER FIGURE
THAN THE SUM OF:

(I)      THE ACTUAL MARKET VALUE AT THE TIME OF PURCHASE;
AND

(II)     THE ACTUAL BROKERAGE, TRANSFER, POSTAGE, OR EXPRESS
CHARGES PAID IN THE ACQUISITION OF THE BOND OR OTHER EVIDENCE OF
INDEBTEDNESS.

(3)      UNLESS OTHERWISE PROVIDED BY A VALUATION THAT THE
COMMISSIONER ESTABLISHES OR APPROVES, A BOND OR OTHER EVIDENCE OF
INDEBTEDNESS MAY NOT BE CARRIED ON ITS BOOKS AT ABOVE THE CALL PRICE
FOR THE ENTIRE ISSUE DURING ANY PERIOD WITHIN WHICH THE SECURITY MAY BE
CALLED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 85(1).

In subsection (b)(3) of this section, the phrase "on its books" is added for
clarity.

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

5-403. INCONSISTENT VALUATIONS.

VALUATIONS UNDER THIS SUBTITLE MAY NOT BE INCONSISTENT WITH
APPLICABLE VALUATIONS OR METHODS FORMULATED OR APPROVED BY THE
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 84(6) and 85(2).

The former references to the "successor organization" of the National
Association of Insurance Commissioners are deleted as implicit in the
reference to the National Association of Insurance Commissioners.

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