74
STAT.]
PUBLIC LAW 86-731-SEPT. 8, 1960
cable to dividends are equal to at least three times the amount of pro forma annual dividend requirements after giving effect to such new financing, and where the bonds and other evidences of indebtedness, if any, of such corporation are eligible as investments under the provisions of subsection (7) of this section, and where the total investment in any one issue of such preferred stock of any one corporation does not exceed 1 per centum of the investing company's admitted assets. " (b) Stocks or other securities guaranteed by any solvent corporation created under the laws of the United States, or any State thereof, or the District of Columbia, or the Dominion of Canada, or any Province thereof, if the guaranteeing corporation has not failed in any one of the three fiscal years next preceding such investment to have earned a sum applicable to interest on outstanding indebtedness and dividends on all guaranteed stocks equal to at least twice the amount of interest and guaranteed dividends payable for that year. No company shall invest in excess of 1 per centum of its assets in any one issue of guaranteed stocks made eligible for investment under this subsection." (e) Subsection (11) of section 35 of chapter III of the Life Insurance Act (D.C. Code 35-535(11)) is amended to read as follows: "(11) Loans upon the pledge of any of the securities aforesaid, not exceeding 85 per centum of the market value of the collateral taken as security at the date of the loan." (f) Paragraph (f) of subsection (14) of section 35 of chapter III of the Life Insurance Act (D.C. Code 35-535 (14)(f)) is amended by deleting the last sentence in its entirety and substituting the following two sentences in lieu thereof: "Such election shall be duly authorized and recorded by the board of directors or by a committee of directors, officers, or employees of the company designated by the Board charged with the duty of supervising loans or investments. The minutes of any such committee shall be duly recorded and regular reports of such committee shall be submitted to the board of directors." (g) Section 35 of chapter III of the Life Insurance Act (D.C. Code 35-535) is amended by adding a new subsection (15) and a new subsection (16) immediately following subsection (14), which ends with the words "as the Superintendent shall direct." The new subsections read as follows: "(15) Any domestic life insurance company may also lend or invest its funds, to an extent that the cost of such investments shall not exceed in the aggregate the lesser of (i) 5 per centum of its total admitted assets, or (ii) the amount of capital, surplus, and contingency reserves in excess of $150,000, in loans or investments (other than common stocks of insurance companies) not otherwise permitted under this section: Provided, Jwwever^ That no company shall invest in excess of 1 per centum of its admitted assets in any one such loan or investment. The company shall keep a separate record of all loans and investments made under this subsection. I n the event that, subsequently to being made under the provisions of this subsection, a loan or investment is determined to have become qualified under sorne other part of this section, the company may consider such loan or investment as being held under the applicable provision and such loan or investment shall no longer be considered as having been made under this subsection. "(16) The compliance of a particular investment with the restrictions that not more than a specified percentage of the investing company's admitted assets may be invested therein, as set forth in subsections (6), (7), (9), (10), (14), or (15) of this section, whichever is applicable, shall be determined as of the date of the making or acquisition of each such investment." 48232 0-61-55
865
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