FOR AN ACT ENTITLED, An Act to revise certain provisions regulating the investment of unneeded state operating expenses in banks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 4-5-6.1 be amended to read as follows:
    4-5-6.1. In lieu of or in addition to other statutory authorization for the investment of public funds, any public funds that are not needed for current operating expenses may be invested in accordance with the following conditions:

            (1)    The public funds shall initially be placed by the public funds depositor in a bank or savings and loan association located in this state which offers Federal Deposit Insurance Corporation insurance on its deposits;

            (2)    The selected bank or savings and loan association simultaneously shall arrange for the deposit of the public funds in certificates of deposit in one or more banks or savings and loan associations federally insured financial institutions wherever located in the United States, for the account of the public funds depositor;

            (3)    At the same time On the same date that the public funds are deposited and the

certificates of deposit are issued for the benefit of the depositor pursuant to subdivision (2) of this section, the selected bank or savings and loan association shall receive an amount of deposits from customers of other banks or savings and loan associations federally insured financial institutions equal to the amount of the public funds initially placed by the public funds depositor;

            (4)    Each such certificate of deposit shall be insured by the Federal Deposit Insurance Corporation;

            (5)    The selected bank or savings and loan association shall act as custodian for the public funds depositor with respect to the certificates of deposit issued for deposits placed in the depositor's account.