PARRIS N. GLENDENING, Governor

Ch. 36

(6)      EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, AN INSURER
MAY NOT INVEST IN OR LOAN ON THE SECURITY OF ANY ONE PROPERTY MORE
THAN THE GREATER OF $25,000 OR 2% OF ITS TOTAL ADMITTED ASSETS.

(7)      THE TOTAL INVESTMENTS OF AN INSURER IN THE KINDS OF
INVESTMENTS ALLOWED UNDER THIS PARAGRAPH MAY NOT EXCEED 40% OF ITS
TOTAL ADMITTED ASSETS.

(K) PURCHASE-MONEY MORTGAGES OR LIKE SECURITIES.

THE RESERVE INVESTMENTS OF AN INSURER MAY INCLUDE
PURCHASE-MONEY MORTGAGES OR LIKE SECURITIES RECEIVED BY THE INSURER
ON THE SALE OR EXCHANGE OF REAL PROPERTY ACQUIRED UNDER SUBSECTION
(N) OF THIS SUBSECTION.

(L) INSURED OR GUARANTEED MORTGAGES.

(1)      THE RESERVE INVESTMENTS OF AN INSURER MAY INCLUDE BONDS,
NOTES, OR OTHER EVIDENCES OF INDEBTEDNESS SECURED BY MORTGAGES OR
DEEDS OF TRUST THAT ARE GUARANTEED OR INSURED BY AN INSTRUMENTALITY
OF THE UNITED STATES UNDER THE NATIONAL HOUSING ACT, SERVICEMEN'S
READJUSTMENT ACT OF 1944, OR BANKHEAD-JONES FARM TENANT ACT.

(2)      THE LIMITATIONS OF THIS SECTION OR ANY OTHER LAW OF THE
STATE THAT REQUIRE SECURITY ON A LOAN, PRESCRIBE THE NATURE, AMOUNT,
OR FORM OF SECURITY ON A LOAN, OR LIMIT THE INTEREST RATE ON A LOAN DO
NOT APPLY TO THESE INSURED OR GUARANTEED MORTGAGE LOANS.

(M) GROUND RENTS.

(1)      SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE
RESERVE INVESTMENTS OF AN INSURER MAY INCLUDE GROUND RENTS IN ANY
STATE.

(2)      FOR UNEXPIRED REDEEMABLE GROUND RENTS, ANY PREMIUM
PAID MUST BE AMORTIZED OVER THE PERIOD BETWEEN THE DATE OF
ACQUISITION AND REDEMPTION DATE.

(3)      FOR EXPIRED REDEEMABLE GROUND RENTS, ANY PREMIUM PAID
MUST BE CHARGED OFF WHEN ACQUIRED.

(4)      AN INSURER SHALL CARRY REDEEMABLE GROUND RENTS
PURCHASED AT A DISCOUNT AT AN AMOUNT NOT GREATER THAN THE COST OF
ACQUISITION.

(N) REAL ESTATE.

(1) THE RESERVE INVESTMENTS OF AN INSURER MAY INCLUDE REAL
ESTATE ONLY IF THE REAL ESTATE:

(I) CONSISTS OF THE LAND AND THE BUILDING ON THE LAND IN
WHICH THE INSURER HAS ITS PRINCIPAL OFFICE;

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