SEC. 2. Section two hundred of the same Act, as amended by Republic Act Numbered Two hundred seventy-three is hereby further amended to read as follows:
"SEC. 200. (1) An insurance corporation, domestic or foreign, may purchase, hold, own and convey such property, real and personal, as may have been mortgaged, pledged, or conveyed to it in good faith in trust for its benefit by reason of money loaned by it in pursuance of the regular business of the corporation, and such real or personal property as may have been purchased by it at sales under pledges, mortgages or deeds of trust for its benefit on account of money loaned by it; and such real and personal property as may have been conveyed to it by borrowers in satisfaction and discharge of loans made by the corporation to them: Provided, however, That in the case of any foreign insurance corporation, any real estate purchased by said corporation in payment or by reason of any loan made by said corporation shall be sold by the corporation within twenty years after the title thereto has been vested in it.
"(2) Insurance corporations may purchase, hold, own and convey real personal property as follows:
"(a) The lot with the building thereon in which the corporation conducts and carries on its business.
"(b) Bonds and other evidences of debt of the Government of the Philippines or its political subdivisions authorized by law to issue bonds at the reasonable market value thereof.
"(c) Bonds or other evidences of debt of government-owned or controlled corporations and entities, including the Central Bank.
"(d) Bonds, debentures or other evidences of indebtedness of any solvent corporation or institution created or existing under the law of the Philippines: Provided, however, That the issuing, assuming or guaranteeing entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three including the last two of the five fiscal years next preceding the date of acquisition by such insurance corporation of such bonds, debentures or other evidences of indebtedness, the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges, as hereinafter defined, shall have been not less than one and one-quarter times the total of its fixed charges for such year: And provided, further, That no life insurance company shall invest in or loan upon the obligations of any one institution in the kinds permitted under this subsection an amount in excess of twenty-five per centum of the total admitted assets of such insurer as of December thirty-first next preceding the date of such investment.
"As used in this subsection the term 'net earnings available for fixed charges' shall mean net income after deducting operating and maintenance expenses, taxes other than income taxes, depreciation and depletion, but excluding extraordinary non-recurring items of income or expense appearing in the regular financial statement of the issuing, assuming or guaranteeing institution. The term `fixed charges' shall include interest on the funded and unfunded debt, amortization of debt discount, and rentals for leased properties.
"(e) Preferred or guaranteed stocks of any solvent corporation of institution created or existing under the laws of the Philippines: Provided, however, That the issuing, assuming or guaranteeing entity or its predecessors has paid regular dividends upon its preferred or guaranteed stocks for a period of at least three years next preceding the date of investment in such preferred or guaranteed stocks: Provided, further, That if the stocks are guaranteed, amount of stocks so guaranteed is not in excess of fifty per centum of the amount of the preferred or common stocks, as the case may be, of the guaranteeing corporation: And provided, finally, That no life insurance company shall invest in or loan upon obligations of any one institution in the kinds permitted under this subsection an amount in excess of ten per centum of the total admitted assets of such insurer as of December thirty-first next preceding the date of such investment.
"(f) Common stocks of any solvent corporation or institution created or existing under laws of the Philippines upon which regular dividends shall have been paid for the three years next preceding the purchase of such stocks: Provided, however, That no life insurance company shall invest in or loan upon the obligations of any one corporation or institution in the kinds permitted under this subsection an amount in excess of ten per centum of the total admitted of such insurer as of December thirty-first next preceding the date of such investment.
"(g) Certificates, notes and other obligations issued by trustees or receivers of any institutions created or existing under the laws of the Philippines which, or the assets of which, are being administered under the direction of any court having jurisdiction: Provided, however, That such certificates, notes or other obligations are adequately secured as to principal and interest.
"(h) Equipment trust obligations or certificates which are adequately secured or other adequately secured instruments evidencing an interest in equipment wholly or in part within the Philippines: Provided, however, That there is a right to receive determined portions of rental, purchase or other fixed obligatory payments for the use or purchase of such equipment.
"(i) Any obligation of a corporation or institution created or existing under the laws of the Philippines which is, on the date of acquisition by the insurer, adequately secured and has qualities and characteristics wherein the speculative elements are not predominant.
"(3) Any domestic insurer which has outstanding insurance, annuity or reinsurance contracts in currencies other than the National currency of the Philippines may invest in, or otherwise acquire or loan upon securities and investment in such currency which are substantially of the same kinds, classes and investment grades as those eligible for investment under the foregoing subdivision of this Act; but the aggregate amount of such investments and of cash in such currency which is at any time held by such insurer shall not exceed one and one-half times the amount of its reserves and other obligations under such contracts or the amount which such insurer is required by the law of any country or possession outside the Republic of the Philippines to invest in such country or possession, whichever shall be greater."
