§ 100. Investments. No domestic life insurance corporation, whether incorporated by special act or under a general law, shall invest in or loan upon any shares of stock of any corporation, other than a municipal corporation, nor, excepting government, state or municipal securities, shall it invest in, or loan upon, any bonds or obligations which shall not be secured by adequate collateral security or where more than one-third of the total value of the collateral security therefor shall consist of shares of stock. Every such corporation which on the first day of June, nineteen hundred and six, owned any shares of stock other than public stocks of municipal corporations, whenever the same were acquired, or any bonds or obligations of the kinds above described where said bonds or obligations were acquired after the first day of March, nineteen hundred and six, shall dispose of said shares of stock and of said bonds and obligations within fifteen years from the thirty-first day of December, nineteen hundred and six, and in each year prior to the expiration of said fifteen years shall make such reduction of its holdings of said securities as may be approved by the superintendent of insurance. No investment or loan shall be made by any such life insurance corporation unless the same shall first have been authorized by the board of directors or by a committee thereof charged with the duty of supervising such investment or loan. No such corporation shall subscribe to or participate in any underwriting of the purchase or sale of securities or property, or enter into any transaction for such purchase or sale on account of said corporation jointly with any other person, firm or corporation; nor shall any such corporation enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of its board of directors. Any such corporation, in addition to other investments allowed by law, may invest any of its funds in any duly authorized bonds or evidences of debt of any government in which such corporation is transacting business, or of any state, or of any city, county, town, village, school district, municipality or other civil division of any state and may loan upon the security of improved unincumbered real property in any state worth fifty per centum more than the amount loaned thereon, but real property shall not be deemed to be encumbered within the meaning of this section, by reason of the existence of instruments reserving mineral, oil or timber rights, rights of way, sewer rights, rights in walls, nor by reason of building restrictions, or other restrictive covenants, nor when such real property is subject to lease under which rents or profits are reserved to the owner, provided that the security for such loan is a first lien upon such real property and that there is no condition or right of re-entry or forfeiture, under which such lien can be cut off, subordinated or otherwise disturbed. Provided, however, that nothing in this section contained shall be construed as prohibiting a life insurance company from entering into an agreement for the purpose of protecting the interests of the company in securities lawfully held by it, or for the purpose of reorganization of a corporation which issued securities so held, and from depositing such securities with a committee or depositaries appointed under such agreement; but such agreement and deposit of securities thereunder must first be approved in writing by the superintendent of insurance with a statement of his reason for such approval. Nor shall this section be construed as preventing such company from accepting corporate stock or bonds or other securities, which may be distributed pursuant to any such agreement approved as aforesaid or to any plan of reorganization approved in writing by the superintendent of insurance with a statement of his reason for such approval. But if any securities so received shall consist in whole or in part of stock in any corporation or of bonds or obligations which shall not be secured by adequate collateral security or where more than one-third of the total value of the collateral security therefor shall consist of shares of stock, then any stock and any such bond or obligation so received shall be disposed of within five years from the time of their acquisition or before the expiration of such further period or periods of time as may be fixed in writing for that purpose by the superintendent of insurance. 2. This act shall take effect immediately. Chap. 397 AN ACT to amend the insurance law, in relation to deposits by insurance corporations of other states. Became a law May 5, 1919, with the approval of the Governor. Passed, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Section twenty-six of chapter thirty-three of the laws of nineteen hundred and nine, entitled "An act in relation to insurance corporations, constituting chapter twenty-eight of the consolidated laws," as amended by chapter six hundred and thirtyfour of the laws of nineteen hundred and ten, is hereby amended to read as follows: 26. Deposits by insurance corporations of other states. Every insurance corporation incorporated under the laws of any other state of the United States, and doing business in this state, shall keep on deposit with the superintendent of insurance of this state, or with the auditor, comptroller or general fiscal officer of the state by whose laws it is incorporated, the same amount and character of securities which a like domestic insurance corporation is required to deposit with the superintendent of insurance of this state, except that no insurance corporation of another state of the United States not now authorized to transact fidelity or surety business in this state, shall hereafter be authorized to transact such business in this state unless it shall have on deposit with the proper state officers of a state or states of the United States at least two hundred and fifty thousand dollars. A corporation of another state, depositing with its home state authorities bonds and mortgages on improved unencumbered real property located in the home state or in this state worth fifty per centum more than the amount loaned thereon, shall be allowed credit for such deposits covered by any certificate of deposit furnished the superintendent of insurance as hereinafter required. The superintendent of insurance shall be furnished with the certificate of such auditor, comptroller or general fiscal officer, under his hand and official seal, that he, as such auditor, comptroller or general fiscal officer of such state, holds in trust and on deposit, for the benefit of all the policyholders of the corporation, such stocks and securities. Such certificate shall embrace the items of the securities so held, and shall state that the officer making it is satisfied that the securities are worth the amount required by law. § 2. This act shall take effect immediately. Chap. 625 AN ACT to amend the tax law, in relation to the franchise tax on insurance corporations. Became a law May 14, 1919, with the approval of the Governor. Passed, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Section one hundred and eighty-seven of chapter sixty-two of the laws of nineteen hundred and nine, entitled "An act in relation to taxation, constituting chapter sixty of the consolidated laws," as amended by chapter seven hundred and ninetysix of the laws of nineteen hundred and seventeen, is hereby amended to read as follows: 8 187. Franchise tax on insurance corporations. An annual state tax for the privilege of exercising corporate franchises or for carrying on business in their corporate or organized capacity within this state equal to one per centum on the excess of the gross amount of premiums charged, over the deductions hereinafter provided, during the preceding calendar year for business done at any time in this state, shall be paid annually into the treasury of the state on or before the first day of June. The gross amount of premiums subject to deduction shall include all premiums charged during such preceding calendar year on all policies, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued or delivered during such preceding and all prior calendar years. The excess of the gross amount of premiums taxable shall be found by deducting from the total amount of premiums charged, including reinsurance premiums charged, for business done in this state under all such policies, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued or delivered during such preceding and all prior calendar years, the amount of premiums paid for reinsurance in corporations taxed under this section, unearned premiums returned on cancellation of policies, premiums on policies not taken and all the so-called dividends made to policy holders, but not including deferred dividends paid in cash to policy holders, on maturing policies; provided, however, that in the case of life insurance companies the word "charged " wherever it appears shall be understood to mean the amount of premiums received. Such tax shall be paid by the corporation which charges the premium provided it is one of the corporations hereinafter described: 1. Every domestic insurance corporation, incorporated, organized or formed under, by or pursuant to a general or special law; 2. Every insurance corporation, incorporated, organized or formed under, by or pursuant to the laws of any other state of the United States, and doing business in this state, except a corporation doing a fire insurance business or a marine insurance business; 3. Every insurance corporation, incorporated, organized or formed under, by or pursuant to the laws of any state without the United States, or of any foreign country, except such a corporation doing a life, health or casualty insurance business, and doing business in this state; but the tax on gross premiums of a corporation so incorporated, organized or formed and doing a fire or marine insurance business within the state shall be equal to five-tenths of one per centum. This section does not apply to a fraternal benefit society, order or association, a corporation for the insurance of domestic animals, a town or county co-operative insurance corporation, nor to any corporation subject to the supervision of or required by or in pursuance of law to report to the superintendent of banks; but this section does apply to an individual, or partnership, or association of underwriters known as Lloyds in so far as corporations doing the same kind of insurance business are subject to its provisions. The taxes imposed by this section shall be in addition to all other fees, licenses or taxes imposed by this or any other law, except that in assessing |