PUBLIC LAW 86-731-SEPT. 8, 1960
Public Law 86-731 -'^ ^ ^ ^
September 8, 1960
To amend section 35 of chapter III of the Life Insurance Act for the District of (Columbia.
[H. R. 10921]
Be it enacted by the Senate and House of Representatives of the ^ United States of America in Congress assembled, That (a) the last ance comp^leL"^ sentence of paragraph (a) of subsection (5) of section 35 of chapter investments. I l l of the Life Insurance Act (D.C. Code 35-535 (5)(a)) is amended ^2 Stat. 48o. to read as follows: "For the purpose of this section, real estate shall ^^^ estate. not be deemed to be encumbered by reason of the existence of— " (i) taxes or assessments that are not delinquent, "(ii) assessments or other charges made by nongovernmental agencies under instruments creating or reserving the right to make charges for the creation or maintenance of roadways, utilities, recreational or other community facilities or for supplying services or benefits for the community in which such real estate is situated, notwithstanding such charges are or may become a lien against the real estate, provided no such charges are delinquent. " (iii) instruments creating or reserving mineral, oil, gas, water, or timber rights, easements, rights-of-way, joint driveways, sewer rights, rights in walls. "(iv) building restrictions or other restrictive covenants, or leases with or without an option to purchase. "(v) conditions or rights of reentry or forfeiture which are insured against by a title insurance company, or which cannot cut off, subordinate, or otherwise disturb the aforesaid first lien on real estate." T r a n sp (b) Subsection (6) of section 35 of chapter III of the Life Insur- equipment!o r t at ion ance Act (D.C. Code 35-535(6)) is amended to read as follows: "(6)(a) Notes, bonds, or equipment trust certificates secured by any transportation equipment leased or sold to a common carrier, domiciled within the United States or the Dominion of Canada, with gross revenues exceeding $1,000,000 in the fiscal year immediately preceding purchase, which notes, bonds, or equipment trust certificates provide a right to receive determined rental, purchase or other fixed obligatory payments adequate to retire the obligations within twenty years from date of issue and also provide (i) for the vesting of title to such equipment, free from encumbrance in a corporate trustee or (ii) for the creation of a first lien on such equipment, provided at the date of purchase such notes, bonds, or trust certificates are not in default as to principal or interest, and provided further that no company shall invest an amount in excess of 2 per centum of its admitted assets in any one issue of such notes, bonds, or equipment trust certificates of any one corporation. "(b) Notes, bonds, or other evidences of indebtedness evidencing rights to receive partial payments agreed to be made upon any contract of leasing or conditional sale, the issue of which has been approved by the proper public authority if such approval was required by law at the time of issue, if such lessee or conditional vendee is a solvent corporation domiciled within the United States or the Dominion of Canada, and if the bonds or other evidences of indebtedness, if any, of such corporation are eligible as investments under the provisions of subsection (7) of this section: Provided, however, That no company shall invest an amount in excess of 2 per centum of its admitted assets in any one issue of such notes, bonds, or other evidences of indebtedness of any one corporation.