§431:6-104  General qualifications.  (a) Notwithstanding the provisions of section 431:6-321, no security or otherinvestment shall be eligible for purchase or acquisition under this articleunless it is interest bearing or interest accruing or income paying, is notthen in default in any respect, and the insurer is entitled to receive for itsexclusive account and benefit, the interest or income accruing thereon; except,that it may acquire real property and non-dividend paying securities asprovided in this article.  An insurer's aggregate investment in non-dividendpaying securities shall not exceed the greater of twenty-five per cent of itsadmitted assets or fifty per cent of its surplus as regards to policyholders asdefined in section 431:6-101.

(b)  No security shall be eligible for purchaseat a price above its fair value.

(c)  No provision of this article shallprohibit the acquisition by an insurer of other or additional securities orproperty if received as a dividend or as a lawful distribution of assets, or ifacquired pursuant to a lawful and bona fide agreement of bulk reinsurance,merger, or consolidation.  Any investments so acquired which are not otherwiseeligible under this article shall be disposed of pursuant to section 431:6-403if personal property or securities, or pursuant to section 431:6-312 if realproperty. [L 1987, c 347, pt of §2; am L 2008, c 142, §3]