PARRIS N. GLENDENING, Governor                               Ch. 36

In subsection (b)(1)(ii) of this section, the term "municipal corporation" is
substituted for the former reference to a "municipality" to conform to Md.
Constitution Art. XI-E.

Also in subsection (b)(1)(ii) of this section, the former word "stocks" is
deleted as meaningless because the State of Maryland and the counties,
districts, and municipal corporations in Maryland do not issue stock.

In the introductory language of subsection (c) of this section, the former
phrase "at all times" is deleted as unnecessary because the phrase "shall
maintain" makes this requirement mandatory and continuing and thus "at all
times".

Also in the introductory language of subsection (c) of this section, the former
phrase "equal in value to such an amount and of the types hereinafter
prescribed" is deleted as unnecessary in light of the substantive provisions of
this section.

Defined terms: "County" § 1-101
"Domestic insurer" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101
"Premium" § 1-101
"State" § 1-101
"Stock insurer" § 1-101

5-608. RESERVE INVESTMENTS.

(A) DEFINITIONS.

(1)     IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)     "FIXED CHARGES" INCLUDE:

(I)      INTEREST ON FUNDED AND UNFUNDED DEBT AMORTIZATION
OF DEBT DISCOUNT; AND

(II)     RENTALS FOR LEASED PROPERTIES.

(3)     "INSTITUTION" INCLUDES A CORPORATION, JOINT STOCK
ASSOCIATION, AND BUSINESS TRUST.

(4)     "NET EARNINGS AVAILABLE FOR FIXED CHARGES" MEANS NET
INCOME AFTER DEDUCTING OPERATING AND MAINTENANCE EXPENSES, TAXES
OTHER THAN FEDERAL AND STATE INCOME TAXES, DEPRECIATION, AND
DEPLETION, AND EXCLUDING EXTRAORDINARY NONRECURRING ITEMS OR
INCOME OR EXPENSE APPEARING IN THE REGULAR FINANCIAL STATEMENTS OF
THE ISSUING, ASSUMING, OR GUARANTEEING INSTITUTIONS.

(5)     "OBLIGATION" INCLUDES BONDS, DEBENTURES, NOTES, OR OTHER
EVIDENCES OF INDEBTEDNESS.

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