See "Negotiable."

Non-Participating Policy. This kind of a life insurance policy is one under which the holder has no right to share in the surplus earnings of the company, as explained under "Participating Policy."

Non-Taxable Investments. Investments which are not subject to taxation. United States Government bonds are non-taxable in all parts of this country, not being subject to either Government or municipal taxation.

The State laws vary greatly as to the taxation of other securities; in some States there exists what is known as " double taxation"; that is, suppose John Smith owns a piece of real estate upon which he is taxed at a valuation of $10,000; he gives a mortgage on the same property to Richard Jones for $7,000; this mortgage is taxed for that amount, making a total taxation upon the same property of $17,000; $7,000 of it is taxed twice.

1 This is required in New York but not in Boston and other cities.

An example of non-taxable securities is best given by-selecting the Commonwealth of Massachusetts, which provides that such investments as bonds and mortgages secured entirely by real estate situated within the Commonwealth, stocks of all Massachusetts corporations, besides certain other securities especially exempted by law, are non-taxable when held within the Commonwealth.