62 STAT.] 80TH CONG., 2D SESS.-CH. 503 -JUNE 19, 1948 "(12) A life-insurance company may also purchase for its own bene- fit any policy of life insurance or other obligation of the company and claims of the holders thereof, and may lend to the holders of its life- insurance policies sums not exceeding in any case the reserve value of the policy at the time the loan is made, and for the payment of any such loan the policy and all amounts payable thereunder shall be pledged. "(13) A company doing business in a foreign country may invest the 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 for- eign country that such company is allowed by law to invest in the United States. " (14) A life-insurance company may also acquire, hold, and convey real estate for the purposes and in the manner following: "(a) the building in which it has its principal office, and the land on which it stands; "(b) such as shall be requisite for its convenient accommoda- tion in the transaction of its business; "(c) such as shall have been acquired for the accommodation of its business; "(d) such as shall have been conveyed to it in satisfaction of debts, previously contracted, in the course of its dealings; "(e) such as it shall have purchased at trustee sale or sales on judgments, decrees, or mortgages obtained or made for such debts; and "(f) such as it may purchase or hold for the production of income. It may improve or otherwise develop in any manner such real estate and the improvements thereon, and may own, maintain, manage, collect, and receive income from, and sell or convey the same. No company shall, in any period of twelve consecutive months, invest in or agree to pay for real estate, including improvements thereon, under the authority of this item (f) an aggregate amount in excess of 2 per centum of its admitted assets as shown in its most recent annual statement; nor shall the total value of real estate and improvements thereon acquired or held by a company for the production of income under the provisions of this item (f) at any time exceed 5 per centum of its said admitted assets. No investment shall be made by any company pursuant to this item (f) if such company then owns real estate having a total value in excess of 10 per centum of its said admitted assets or if such investment will cause such com- pany's aggregate investments in real estate owned by it to exceed 10 per centum of its said admitted assets: Provided, That for the purpose of applying said 10 per centum limitation real estate shall include all real estate then owned by the company and such real estate as it may have owned and sold on contract, to the extent of the balance unpaid on such contract of sale; or if the balance unpaid on account of real estate owned and sold by a company is secured by mortgage or other instrument, there shall be included as real estate the amount, if any, by which the balance unpaid exceeds 75 per centum of the value of such real estate. A com- pany may, subject to the limitations and conditions of this item (f), elect to consider property acquired as specified in items (c), (d), and (e) as real estate for the production of income as defined in this item (f). Such election shall be duly authorized and recorded by the board of directors or by a committee thereof charged with the duty of supervising loans or investments. All such real estate specified in items (c), (d), and (e) of this sub- section (14), which shall not be necessary for its accommodation in the convenient transaction of its business, and which it has not elected to 483 Purchase of policies. Company in busi- ness in a foreign country. Real estate hold- ings. Limitation. S of property.
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