4-5-6.2 Investment in direct obligations of county, municipality, or school district or in bonds i...
Investment in direct obligations of county, municipality, or school district or in
bonds issued by state authority.
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:
Direct obligations of any county, municipality, or school district in the state; and
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
Source: SL 2011, ch 26, § 1; SL 2012, ch 32, § 1.