An Act to amend section 35 of chapter III of the Life Insurance Act for the District of Columbia
PL 86-731 (H.R.10921), enacted 09/08/1960

74 S T A T . ] 
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 
[H. R. 10921] 
District of (Columbia. 
Be it enacted hy 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 sup-
plying services or benefits for the community in which such real 
estate is situated, notwithstanding such charges are or may be-
come 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." 
(b) Subsection (6) of section 35 of chapter I I I of the Life Insur- eqiipment! 
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 con-
tract of leasing or conditional sale, the issue of which has been ap-
proved 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 Domin-
ion of Canada, and if the bonds or other evidences of indebtedness, if 
any, of such corporation are eligible as investments under the provi-
sions of subsection (7) of this section: Provided, however, That no 
company shall invest an amount in excess of 2 per centum of its ad-
mitted assets in any one issue of such notes, bonds, or other evidences 
of indebtedness of any one corporation. 
T r an sport at ion 
864 
PUBLIC LAW 86-731-SEPT. 8, 1960 
[74 STAT, 
Bonds of solvent 
corporations. 
Preferred stock. 
"(c) Equipment or machinery for use in transportation, manufac-
turing, production or distribution, leased or to be leased to any solvent 
corporation domiciled within the United States or the Dominion of 
Canada, 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 such equipment or machinery leased or to be leased to any one 
corporation." 
(c) Subsection (7) of section 35 of chapter I I I of the Life Insur-
ance Act (D.C. Code 35-535 (7)) is amended to read as follows: 
"(7) (a) Bonds and other evidences of indebtedness of 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: Provided^ That (i) no company shall invest 
an amount in excess of 2 per centum of its admitted assets in any one 
issue of such obligations of any one corporation; (ii) the net earnings 
of the issuing corporation available for its fixed charges for a period 
of five fiscal years next preceding the date of acquisition by such in-
surance company shall have averaged yearly, and during the last 
year of said five-year period shall have been not less than one and 
one-half times its annual fixed charges at the time of the investment, 
or, if a new issue, as shown by the pro forma statement of the cor-
poration; and (iii) there shall have been no defaults in interest there-
on, or on any such obligations of such corporation which are of equal 
or higher priority with those purchased, during the period of five 
years next preceding the date of acquisition, or, if outstanding for less 
than five years, at any time since said obligations were issued. 
The 
term 'net earnings available for fixed charges', as used herein, shall 
mean the net income after deducting all operating and maintenance 
expenses, depreciation and depletion, and taxes other than Federal, 
State, and District of Columbia income taxes, but nonrecurring items 
of income and expense may be eliminated. The term 'fixed charges' 
as used herein shall include interest on all of the fixed interest bearing 
debt of the corporation outstanding and maturing in more than one 
year, as of the date of acquisition, and in case of investment in con-
tingent interest obligations, said term shall also include maximum 
annual contingent interest as of said date. 
The earnings of all pred-
ecessor, merged, consolidated, or purchased companies may be in-
cluded through the use of consolidated or pro forma statements pro-
vided the fixed charges of all such companies are also included. 
"(b) Certificates, notes, or other obligations issued by trustees or 
receivers of any corporation created or existing under the laws of the 
United States or of any State, District, or Territory thereof, which, or 
the assets of which, are being administered under the direction of any 
court having jurisdiction: Provided, That no company shall invest 
an amount in excess of 2 per centum of its admitted assets in any one 
issue of such certificates, notes or other obligations of any one cor-
poration." 
(d) Subsection (9) of section 35 of chapter I I I of the Life Insur-
ance Act (D.C. Code 35-535(9)) is,amended to read as follows: 
"(9) (a) Preferred stock of any solvent corporation (other than its 
own) created under the laws of the United States, or of any State 
thereof, or the District of Columbia, or the Dominion of Canada, or 
any Province thereof, where such corporation has not failed in any 
one of the three fiscal years next preceding such investment, to have 
earned a sum applicable to dividends on such preferred stock equal 
at least to three times the amount of dividends due in that year, or 
where in case of issuance of new preferred stock such earnings appli-
74 S T A T . ] 
PUBLIC LAW 86-731-SEPT. 8, 1960 
865 
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 provi-
sions 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 corpora- st^cks^ or^ sic^uli-
tion created under the laws of the United States, or any State thereof, "es. 
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 I I I of the Life Insur-
ance 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 
Loans, 
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 I I I 
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 follow-
ing two sentences in lieu thereof: "Such election shall be duly author- est^afe'holdfngs^.^^ 
ized 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 regu-
lar reports of such committee shall be submitted to the board of 
directors." 
(g) Section 35 of chapter I I I 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 sub-
sections read as follows: 
"(15) Any domestic life insurance company may also lend or in- ve^wnts!""^ ^" 
vest 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 con-
tingency 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. 
In 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 restric-
tions that not more than a specified percentage of the investing com-
pany's admitted assets may be invested therein, as set forth in sub-
sections (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 
PUBLIC LAW 86-732-SEPT. 8, 1960 
[74 ST A T , 
^ p r o v a l of loans 
or investments. 
Joint 
loans 
investments. 
Effective date. 
(h) The second from last paragraph of section 35 of chapter I I I 
of the Life Insurance Act (D.C. Code 35-535) is amended to read 
as follows: "No loan or investment, except loans on the security of 
life insurance policies, shall be made by any such company, unless 
the same shall have been authorized or be approved 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 supervis-
ing 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." 
(i) The next to the last paragraph of section 35 of chapter I I I of 
the Life Insurance Act (D.C. Code 35-535) is amended by adding the 
following sentence at the end thereof: "Nothing contained in this 
paragraph shall be construed to invalidate or prohibit such a com-
pany from joining with one or more other investors to share in the 
purchase of any securities or the making of any loan for investment 
purposes." 
SEC. 2. The amendments made by this Act shall become effective on 
September 1, 1960. 
Approved September 8, 1960. 
Public Law 86-732 
September 8, 1960 
[H. R. 12S33] 
AN ACT 
To amend the Migratory Bird Treaty Act to increase the penalties for violation 
of that Act, and for other purposes. 
Migratory 
B i r d 
Treaty Act, amend-
ment. 
P e n al ties i n-
crease. 
40 Stat. 756. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled^ That section 6 
of the Migratory Bird Treaty Act (16 U.S.C. 707) is amended to read 
as follows: 
"SEC. 6. (a) Except as otherwise provided in this section, any per-
son, association, partnership, or corporation who shall violate any 
provisions of said conventions or of this Act, or who shall violate or 
fail to comply with any regulation made pursuant to this Act shall 
be deemed guilty of a misdemeanor and upon conviction thereof shall 
be fined not more than $500 or be imprisoned not more than six 
months, or both. 
"(b) Whoever, in violation of this Act, shall— 
"(1) take by any manner whatsoever any migratory bird with 
intent to sell, offer to sell, barter or offer to barter such bird, or 
" (2) sell, offer for sale, barter or offer to barter, any migratory 
bird shall be guilty of a felony and shall be fined not more than 
$2,000 or imprisoned not more than two years, or both. 
"(c) All guns, traps, nets and other equipment, vessels, vehicles, and 
other means of transportation used by any person when engaged in 
pursuing, hunting, taking, trapping, ensnaring, capturing, killing, 
or attempting to take, capture, or kill any migratory oird in violation 
of this Act with the intent to offer for sale, or sell, or offer for barter, 
or barter such bird in violation of this Act shall be forfeited to the 
United States and may be seized and held pending the prosecution 
of any person arrested for violating this Act and upon conviction 
for such violation, such forfeiture shall be adjudicated as a penalty 
in addition to any other provided for violation of this Act. 
Such for-
feited property shall be disposed of and accounted for by, and under 
the authority of, the Secretary of the Interior." 
Approved September 8, 1960.