(1) A friendly society to which section 37(2) or (3) above applies which has entered into contracts of insurance shall secure -
(a) that its liabilities under those contracts, other than liabilities in respect of linked benefits, are covered by assets of appropriate safety, yield and marketability having regard to the classes of business carried on; and
(b) without prejudice to the generality of paragraph (a) above, that its investments are appropriately diversified and adequately spread and that excessive reliance is not placed on investments of any particular category or description.
(2) A friendly society to which section 37(2) above applies which has entered into a linked long term contract shall secure that, as far as practicable, its liabilities under the contract in respect of linked benefits are covered as follows -
(a) if those benefits under the contract are linked to the value of units in an undertaking for collective investments in transfer-able securities or to the va