40-2b18. Real estate investment trusts.
40-2b18
40-2b18. Real estate investment trusts.Any life insurance company heretofore or hereafter organized under anylaw of this state may invest by loans or otherwise, with the directionor approval of a majority of its board of directors or authorizedcommittee thereof, any of its funds, or any part thereof in shares ofbeneficial interest in or obligations issued by a real estate investmenttrust qualified under sections 856 through 858 of the federal internalrevenue code which 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. 40-2b05;
(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;
(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 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. 40-2b10.
History: L. 1972, ch. 179, § 18; July 1.