<html> <head> <title>Rule 06:02:02:06 Method of pledging eligible securities, certificates of deposit, or issuing letters of credit.</title> <META NAME="Keywords" Content="Administrative Rules 06:02:02:06"> <META NAME="Description" Content="Administrative Rules 06:02:02:06 Method of pledging eligible securities, certificates of deposit, or issuing letters of credit."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} @font-face {font-family:Times; panose-1:2 2 6 3 5 4 5 2 3 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; punctuation-wrap:simple; text-autospace:none; font-size:10.0pt; font-family:"Times","serif";} /* Page Definitions */ @page WordSection1 {size:8.5in 11.0in; margin:49.7pt 63.35pt 49.7pt 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'><a name="_GoBack"></a><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>6:02:02:06.&nbsp;&nbsp;Method of pledging eligible securities, certificates of deposit, or issuing letters of credit.</b> Every security or certificate of deposit pledged to the commission must be deposited with a custodian that is a member of the federal reserve system, and evidenced with joint receipts of custody from the custodian. One copy must be sent to the state treasurer and one copy must be sent to the qualified public depository which has secured the public deposits. In lieu of securities, certificates of deposit, book entry receipts, or investment securities which include portions of loans which are unconditionally guaranteed by a United State's government agency, irrevocable standby letters of credit may be furnished on behalf of the public depository if they are provided according to the requirements of &#167;&nbsp;6:02:02:03 and if the letter of credit is issued by a federal home loan bank. Each letter of credit must be assigned to the commission as the beneficiary and must be accompanied by a credit rating report.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 13 SDR 37, effective October 9, 1986; 24 SDR 93, effective January 12, 1998; 42 SDR 51, effective October 13, 2015.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-20">4-6A-20.</A></span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-1">4-6A-1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-3">4-6A-3</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-5">4-6A-5.</A></span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> </div> </body> </html>