CHAPTER 252

(SB 124)

Bank investments in annuities regulated.


         ENTITLED, An Act to  clarify certain provisions relating to bank investments in certain annuities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 51A-4-25.1 be amended to read as follows:

     51A-4-25.1.   For the purposes of § 51A-4-25, an annuity is an investment that credits interest from the inception of the contract, has an interest guarantee period that may be from thirty days to one year in length, and is backed by the assets of the insurer. The insurer shall be rated in the top three categories of both Standard and Poor's Corporation and Moody's Investors Service. The annuity shall be fully liquid and , unless otherwise provided for by Title 58. The annuity may not be subject to any surrender charges or any other restrictions on redemptions charge .

     Signed February 24, 2005
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