Page:United States Statutes at Large Volume 54 Part 1.djvu/1106

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PUBLIC LAWS-CRL 792--00T 9, 1940 by such company or filed with the Superintendent shall show the amount thereof then remaining unpaid. Investmentoffunds SEO . 18. INVESrMENT OF FUNDS OF DOmESTTO COMPANIES.-A domes- of domestic compa- nies. tic company shall invest its funds only in- Government, etc., (1) Bonds or other evidences of indebtedness of the United States, or of any State; or of the Dominion of Canada, or of any Province thereof. County, etc., bonds. (2) Bonds or other evidences of indebtedness of any county, city, town, village, school district, or other municipal district within the United States or the Dominion of Canada which shall be a direct obli- gation of the county, city, town, village, or district issuing the same. Bonds, etc.,secured (3) Bonds or notes secured by mortgages or deeds of trust on unen- cumbered real estate. cumbered real estate or perpetual leases thereon in the United States or Dominion of Canada worth not less than 50 per centum more than pr aens e of im- the amount loaned thereon. Where improvements on the land consti- tute a part of the value on which the loan is made, the improvements shall be insured against fire for the benefit of the mortgage in an amount not less than the difference between two-thirds of the value of Unencumbered real the land and the amount of the loan: Provided,That for the purposes estateconstrued. of this section real estate shall not be deemed to be encumbered within the meaning of this section by reason of the existence of taxes or assess- ments that are not delinquent, instruments creating or reserving min- eral, oil, or timber rights, rights-of-way, joint driveways, sewer rights, rights in walls, nor by reason of building restrictions or other restrictive covenants, nor when such real estate is subject to lease in whole or in part whereby rents or profits are reserved to the owner. Bsur , edby t.i (4) Bonds or notes secured by mortgages insured by the Federal Housing Administrator and in debentures issued by the Federal Hous- PrSition waived ing Administrator: Provided, That the restrictions in subparagraph (3) of this section in regard to the ratio of the loan to the value of the property shall not apply to such insured mortgages. baondso farm-loan (5) Bonds or other evidences of indebtedness of the farm-loan banks 39 Stat. 360. authorized under the Federal Farm Loan Act or Acts amendatory 12U.S .O .§§ 641-1012; supp. v, § 41-11oo' thereof or supplementary thereto, and bonds or other evidences of toks, etc., of s- indebtedness of national mortgage associations. vent corporations. (6) Stock or bonds and other evidences of indebtedness of any sol- vent corporation of any State or Territory of the United States or of the District or of any Province of the Dominion of Canada, except- Prion. ing stock in its own corporation: Provided,That no such investment Restriction shall be made in or loan made upon the security of any such stocks upon which dividends in cash during the period of five years next preceding such purchase in each fiscal year for said five years shall not have been paid, and upon which bonds any regular interest pay- ment shall have been defaulted any time within five years prior to such purchase or loan. Designated loan Loans upon the pledge of any of the securities aforesaid. Company doing (8) A company doing business in a foreign country may invest the business abroad, in- vestments. funds required to meet its obligations in such country and in con- formity to the laws thereof in the same kind of securities in such foreign country that such company is allowed by law to invest in the United States. BondsofHOLC. (9) The bonds of the Home Owners' Loan Corporation, a corpora- 48 Stat. 128 . 1v.s .C .§i4i-14 tion organized under and pursuant to the authority of the Home Bupp. v, Hfir' . Owners' Loan Act of 1933, passed by the Congress of the United States and approved June 13, 1933. Restriction. No loan or investment shall be made by any such company, unless the same shall have been authorized by the board of directors or by a committee thereof charged with the duty of supervising loans or investments [4 STAT.