May 27, 1999

The Honorable Casper R. Taylor, Jr.
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 273.

This bill authorizes the reserve investments of life insurers to include residential real
estate loans not exceeding 95 percent of the fair market value of the real estate if
certain conditions are met.

Senate Bill 189, which was passed by the General Assembly and signed by me on May
27, 1999, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 273.

Sincerely,

Parris N. Glendening
Governor

House Bill 273

AN ACT concerning

Life Insurers - Reserve Investments

FOR the purpose of authorizing the reserve investments of life insurers to include
certain residential real estate loans in an amount not exceeding a certain
percentage of the fair market value of the real estate under certain
circumstances; prohibiting a life insurer from placing more than a certain
percentage of certain assets in certain loans; and generally relating to reserve
investments of life insurers.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 5-511(g)
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

5-511.

(g) (1) The reserve investments of a life insurer may include loans secured
by first mortgages, or deeds of trust, on unencumbered fee-simple or improved