PUBLIC LAWS-CH. 686-AUG. 22 , 1940 Minimum capitali- zation. Maintenance of minimum certificate reserves. collect or accept any payment on any such certificate issued by such company on or after the effective date of this title, unless- (1) such company, if organized before March 15, 1940, was actively and continuously engaged in selling face-amount cer- tificates on and before that date, and has outstanding capital stock worth upon a fair valuation of assets not less than $50,000; or if organized on or after March 15, 1940, has capital stock in an amount not less than $250,000 which has been bona fide subscribed and paid for in cash; and (2) such company maintains at all times minimum certificate reserves on all its outstanding face-amount certificates in an aggregate amount calculated and adjusted as follows: (A) the reserves for each certificate of the installment type shall be based on assumed annual, semi-annual, quarterly, or monthly reserve payments according to the manner in which gross payments for any certificate year are made by the holder, which reserve payments shall be sufficient in amount, as and when accumulated at a rate not to exceed 31/2 per centum per annum compounded annually, to provide the minimum maturity or face amount of the certificate when due. Such reserve payments may be graduated according to cer- tificate years so that the reserve payment or payments for the first certificate year shall amount to at least 50 per centum of the required gross annual payment for such year and the reserve payment or payments for each of the second to fifth certificate years inclusive shall amount to at least 93 per centum of each such year's required gross annual payment and for the sixth and each subsequent certificate year the reserve payment or payments shall amount to at least 96 per centum of each such year's required gross annual payment: Provided,That such aggregate reserve payments shall amount to at least 93 per centum of the aggregate gross annual pay- ments required to be made by the holder to obtain the matur- ity of the certificate. The company may at its option take as loading from the gross payment or payments for a certificate year, as and when made by the certificate holder, an amount or amounts equal in the aggregate for such year to not more than the excess, if any, of the gross payment or payments required to be made by the holder for such year, over and above the per- centage of the gross annual payment required herein for such year for reserve purposes. Such loading may be taken by the company prior to or after the setting up of the reserve pay- ment or payments for such year and the reserve payment or payments for such year may be graduated and adjusted to correspond with the amount of the gross payment or payments made by the certificate holder for such year less the loading so taken; (B) if the foregoing minimum percentages of the gross annual payments required under the provisions of such cer- tificate should produce reserve payments larger than are necessary at 31/2 per centum per annum compounded annu- ally to provide the minimum maturity or face amount of the certificate when due, the reserve shall be based upon reserve payments accumulated as provided under preceding subparagraph (A) of this subsection except that in lieu of the 31/2 per centum rate specified therein, such rate shall be lowered to the minimum rate, expressed in multiples of one- eighth of 1 per centum, which will accumulate such reserve payments to the maturity value when due; 830 L54 STAT.