ENTITLED, An Act to revise certain provisions concerning the investment of public funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 4-5-6.2 be amended to read as follows:
4-5-6.2. In addition to the investments permitted by § 4-5-6, any public funds which are not
needed for current operating expenses may be invested in:
(1) Direct obligations of any county, municipality, or school district in the state; and
(2) Bonds issued by the South Dakota Housing Development Authority, the South Dakota
Health and Educational Facilities Authority, or the South Dakota Building Authority.
The investments shall be registered in the name of the political subdivision or authority or held
under a custodial agreement at a bank. The investments shall be rated at the time of purchase within
the two highest general classifications established by a rating service of nationally recognized
expertise in rating bonds of states and their political subdivisions. Other than permanent, trust,
retirement, building, and depreciation reserve funds, such securities as provided in subdivisions (1)
and (2) shall mature with eighteen months from the date of purchase or be redeemable at par at the
option of the holder within eighteen months from the date of purchase.
Moneys in any bond redemption fund may be invested only in the types of investments listed in
§ 4-5-6. The investments shall be due and payable on or before the date when the bonds for the
payment of which the bond redemption fund was created become due and payable, except bonds of
the United States redeemable at par.
No restriction in this section limits the investment authority otherwise granted under the laws of
An Act to revise certain provisions concerning the investment of public funds.
I certify that the attached Act
originated in the
SENATE as Bill No. 104
Secretary of the Senate
President of the Senate
Secretary of the Senate
Speaker of the House
Senate Bill No. 104
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State