CHAPTER 11
(SB 185)
Health and Education Facilities Authority
permissible investments revised.
ENTITLED, An Act to
revise certain provisions concerning the investment of the funds of the
Health and Education Facilities Authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That
§
1-16A-19
be amended to read as follows:
1-16A-19.
The authority may invest any funds, including funds made available to the authority
pursuant to
§
1-16A-75, in the following:
(1)
Bonds, notes, certificates of indebtedness, treasury bills, or other securities constituting
direct obligations of, or obligations the principal of and interest on which are fully
guaranteed or insured by, the United States of America;
(2)
In obligations issued by or obligations the principal of and interest on which are fully
guaranteed or insured by any agency or instrumentality of the United States of America;
(3)
In certificates of deposit or time deposits constituting direct obligations of any bank
which is a "qualified public depository" or any savings and loan association which is a
"savings and loan depository" under the Public Deposit Insurance Act pursuant to
chapter 4-6A, unless sufficient volume of such certificates is not available at competitive
interest rates. In that event, the authority may purchase noncollateralized direct
obligations of any bank or savings institution or holding company if such institution or
holding company is rated in the highest two quality categories by a nationally recognized
rating agency;
(4)
In obligations of any solvent insurance company or other corporation or business entity
existing under the laws of the United States or any state thereof, provided the
obligation
long term obligations
of such insurance company or other corporation or business entity
(or of any affiliate thereof which guarantees timely payment of the obligations to be in
invested in)
shall be rated in
one of
the two highest
rating
classifications established by
a standard rating service of insurance companies or a nationally recognized rating
agency;
(5)
In short term discount obligations of the Federal National Mortgage Association;
(6)
In obligations issued by any state of the United States or any political subdivision, public
instrumentality, or public authority of any state of the United States, which obligations
are not callable before the date the principal thereof will be required to be paid and which
obligations are fully secured as to both sufficiency and timely payment by, and payable
solely from, securities described in subdivision (1) and which obligations are rated in the
highest investment classification by at least two standard rating services of such
obligations.
Any such securities may be purchased at the offering or market price thereof at the time of such
purchase. All such securities so purchased shall mature or be redeemable on a date or dates prior
to the time when, in the judgment of the authority, the funds so invested will be required for
expenditure. The express judgment of the authority as to the time when any funds will be required
for expenditure or be redeemable is final and conclusive. Investment in any obligation enumerated
in this section may be made either directly or in the form of securities of, or other interests in, an
investment company registered under the Federal Investment Act of 1940, whose shares are
registered under the Federal Securities Act of 1933 and whose investments are limited to these
obligations.
Signed March 7, 2003.