OAG 40-73.

• Case Date: October 04, 1940
• Court: Oregon

Oregon Attorney General Opinions 1940. OAG 40-73. 82OPINION NO. 40-73[20 Or. Op. Atty. Gen. 82]The capital stock of domestic insurance corporations to the extent of minimum capital required by law, and assets of domestic mutual insurance companies to the extent of amount equal to minimum capital of like domestic stock corporation, may be invested in legally issued bonds of municipalities secured wholly by revenue.October 4, 1940.Mr. Seth B. Thompson,Insurance Commissioner. Dear Sir: I have your letter of September 7th in which you request my83opinion upon the question as to whether or not a domestic insurance company may purchase for investment legally issued bonds of municipalities secured wholly by revenues. Section 46-408, Oregon Code 1935 Supplement, provides:

"(1) The capital stock of every domestic insurance corporation required to have a capital, to the extent of the minimum capital required by law, and the assets of every domestic mutual insurance corporation, to the extent of an amount equal to the minimum capital required of a like domestic stock corporation, shall be invested and kept invested as follows:

"(3) Second, in the legally issued bonds, warrants and securities of any county, incorporated city, incorporated school district or incorporated district in this state, which has not defaulted in the payment of interest on any of its bonds, warrants or securities within three (3) years, and which shall not be estimated above their par value, nor their current market value.

"(5) Fourth, the residue of the capital and the surplus money and funds of every domestic insurance corporation over and above its capital and any deposit that it may be required to make with the insurance commissioner, and the residue of the surplus money and funds of a mutual insurance corporation over and above the minimum amount required of a like stock insurance corporation, may be invested as follows:

(c) In the bonds or interest bearing notes or obligations issued under authority of law by any city, city and county, county, municipality, or school district in this state or in any other state or territory of the United States or in any province of the Dominion of Canada; provided, that said city, city and county, county, municipality, or school district, or the state, territory or province in which it is located has not within three

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