§ 27-4-19 - Valuation of bonds and fixed obligation investments. - Rhode Island Statutes

SECTION 27-4-19

   § 27-4-19  Valuation of bonds and fixedobligation investments. – All bonds or other evidences of debt having a fixed term and rate held by anylife insurance company, assessment life association, or fraternal beneficiaryassociation authorized to do business in this state, may, if amply secured andnot in default as to principal or interest, be valued as follows: if purchasedat par, at the par value; and if purchased above or below par, on the basis ofthe purchase price adjusted so as to bring the value to par at maturity and soas to yield in the meantime the effective rate of interest at which thepurchase was made; provided, that the purchase price shall in no case be takenat a higher figure than the actual market value at the time of purchase; andprovided, that the director of business regulation shall have full discretionin determining the method of calculating values according to this rule.