40-2a18. Real estate investment trusts.
40-2a18
40-2a18. Real estate investment trusts.Any insurance company other than life heretofore or hereafter organizedunder any law of this state may invest with the direction or approval ofa majority of its board of directors or authorized committee thereof,any of its funds, or any part thereof in shares of beneficial interestin or obligations issued by a real estate investment trust qualifiedunder sections 856 through 858 of the federal internal revenue codewhich meet the following qualifications:
(a) The obligations shown on the last published annual statement ofsuch trust must meet the qualifications specified for corporateobligations in subsections (a) through (d) of K.S.A. 40-2a05.
(b) Cash dividends have been paid during each of the last three (3)years preceding the date of acquisition.
(c) The shares are registered on a national securities exchangeregulated under the securities exchange act of 1934, as amended, orregularly traded on a national or regional basis.
(d) The trust shall have earnings in three (3) of the last five (5)years preceding date of acquisition.
(e) No insurance company shall own more than five percent (5%) ofthe total number of shares of any one such trust, nor invest more thantwo percent (2%) of its admitted assets in shares of any one such trust.
Shares in each such trust which has over one-half (1/2) of its assetsinvested in ownership of real estate or which has such ownership as itsstated investment objective shall be considered a real estate investmentfor purposes of conforming with the limitation on real estate ownershipimposed in K.S.A. 40-2a13.
History: L. 1972, ch. 173, § 18; July 1.