CHAPTER 148

An Act to amend and reenact § 88.1-200 of the Code of Virginia, relating
to investments of insurers in unsecured obligations of certain corpora-
tions, churches and religious bodies.

[fH 468]

Approved March 2, 1964

Be it enacted by the General Assembly of Virginia:

1. That § 38.1-200 of the Code of Virginia be amended and reenacted
as follows:

§ 38.1-200. Any such insurer may invest its assets in bonds, deben-
tures or notes of any solvent company incorporated under the laws of the
United States, or of any state thereof, or under the laws of the Dominion
of Canada or of any province thereof, or in the bonds, debentures or notes
of any solvent church or religious body, although such bonds, debentures or
notes are not secured as provided in § 38.1-199, if such corporation,
church or religious body, after paying or providing for the payment of in-
come and other taxes, if any, and after deducting proper charges for re-
placements, depreciation and obsolescence, has not failed in any one of
the three fiscal years next preceding such investment, to have earned in
the case of a corporation, or to have earned or by gift received an the case
of a church or religious body, a sum applicable to interest on its outstand-
ing indebtedness equal at least to twice the amount of interest due for that
year, or, in the case of new issues, such earnings and receipts applicable to
interest are equal to at least twice the amount of pro forma annual interest
on the * obligations of such corporation, church or religious body after giv-
ing effect to such new financing. No such insurer shall invest in excess of
two per centum of its assets in any one issue of bonds, debentures or notes
made eligible for investment under this section.