N.Y. ISC Law § 4526

§ 4526. Investments of fraternal benefit societies. (a) For purposes\nof investments made pursuant to the provisions of section one thousand\nfour hundred four of this chapter, the term "institution" shall only\ninclude a corporation, a joint-stock association, and a business trust\nand the term "obligations" shall only include bonds, debentures, notes,\nor other evidences of indebtedness. Notwithstanding the provisions set\nforth in items (ii) and (iv) of subparagraph (A) of paragraph two of\nsubsection (a) of such section, a society is authorized to invest, in an\namount not to exceed thirty-three percent of its admitted assets as\nshown by its last statement on file with the superintendent, in\nobligations of American institutions which:\n (1) are rated BBB or higher (or the equivalent thereto) by a\nsecurities rating agency recognized by the superintendent, or if not so\nrated, are similar in structure and in all material respects to other\nobligations of the same institution which are so rated, or\n (2) have been given at least the second highest quality designation by\nthe Securities Valuation Office of the National Association of Insurance\nCommissioners.\n (b) Investments in loans secured by real property and investments in\nreal property made pursuant to the provisions of paragraphs four and\nfive of subsection (a) of such section shall be permitted only to the\nextent that such investments are acquired or held directly by such\nsociety.\n (c) Foreign investments made pursuant to the provisions of paragraph\nsix of such subsection shall only consist of the following:\n (1) Investments in Canada which are substantially of the same kinds,\nclasses and investment grades as those eligible for investment under\nother provisions of such subsection. The aggregate amount of such\ninvestments held at any time shall not exceed the greater of ten percent\nof the society's admitted assets as shown by its last statement on file\nwith the superintendent or the amount, if any, permitted pursuant to\nparagraph two hereof.\n (2) Investments in a foreign country or in a possession of the United\nStates if the society is authorized to do business therein, or if the\nsociety has outstanding insurance, annuity or reinsurance contracts on\nlives or risks resident or located therein; provided such investments\nare substantially of the same kinds, classes and investment grades as\nthose eligible for investment under other provisions of such subsection.\nThe aggregate amount of such investments and of cash in the currency of\nsuch country or possession at any time held shall not, except as\npermitted by paragraph one hereof, exceed the amount which such society\nis required by law to invest in such country or possession or one and\none-half times the amount of its reserves and other obligations under\nsuch contracts, whichever is greater.\n (3) Investments in any foreign country, in addition to investments\npermitted under paragraphs one and two hereof, which are substantially\nof the same kinds, classes and investment grades, and in the same\nproportions, as those eligible for investment under other provisions of\nsuch subsection and subsection (a) of this section
and other obligations under\nsuch contracts, whichever is greater.\n (3) Investments in any foreign country, in addition to investments\npermitted under paragraphs one and two hereof, which are substantially\nof the same kinds, classes and investment grades, and in the same\nproportions, as those eligible for investment under other provisions of\nsuch subsection and subsection (a) of this section. The aggregate amount\nof such investments made pursuant to this paragraph shall not exceed\nfour percent of the society's admitted assets as shown by its last\nstatement on file with the superintendent and provided that a society\nshall not make any investment in any foreign country pursuant to this\nparagraph, if such investment, together with all other investments in\nthe same foreign country so made and then held by such insurer, would\nexceed one percent of the society's admitted assets as shown by its last\nstatement on file with the superintendent.\n (d) Investments in equity interests made pursuant to paragraph eight\nof such subsection shall be limited to investments in common shares and\nshall not include investments in partnership interests or other equity\ninterests.\n