OCR Text |
Show TO AMORTIZE BONDS UNDERLAW IN UTAH Senator Knight would amortize the valuation of bonds and other securities secur-ities by life Insurance companies, assessment as-sessment life associations and fraternal fra-ternal beneficiary associations by the amortisation method. With this In view he has introduced senate bill No. 8(1. His measure, which contains con-tains an emergency clause, provides: "All bonds or other evidences of debt having a fixed term and rate held by sny life Insurance company, assessment life association or fra-tomal fra-tomal beneficiary association authorised author-ised to do business in this state may If amply secured and not in default aa to principal and Interest, be valued as follows: "If purchased at par. at the par value; If purchased above or below par, on the basis of the purchase price and adjusted so as to bring the value to par at maturity and soCs to yield In the meantime the effective effec-tive rate of interest at which the purchase was made; provided that the purchase price shall In no case he taken at a higher figure than the actual market value at the time of purchase; and providing further that the commissioner of Insurance shall have full discretion In determining deter-mining the method of calculating values val-ues according to the foregoing rule" |