<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 4-5-6 - Investment in securities of or guaranteed by United States, repurchase agreements, or shares of registered investment companies. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2033773Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2033773SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2033773CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2033773Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2033773DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2033773DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2033773000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2033773SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2033773SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2033773Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-6"><span class="s2033773SENU">4-5-6</span></a><span xml:space="preserve" class="s2033773SENU">. </span><span class="s2033773CL">Investment in securities of or guaranteed by United States, repurchase agreements, or shares of registered investment companies.</span></p><p dir="ltr" class="s2033773Normal-000000"><span xml:space="preserve" class="s2033773DefaultParagraphFont">Any public funds which will not be needed for current operating expenses may be invested in: (a) securities of the United States and securities guaranteed by the United States government either directly or indirectly including, without limitation, United States treasury bills, notes, bonds, and other obligations issued or directly or indirectly guaranteed by the United States government, or otherwise directly or indirectly backed by the full faith and credit of the United States government; provided that, for other than permanent, trust, retirement, building, and depreciation reserve funds, such securities shall either mature within eighteen months from the date of purchase or be redeemable at the option of the holder within eighteen months from the date of purchase; or (b) repurchase agreements fully collateralized by securities described in (a) and meeting the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-9"><span class="s2033773DefaultParagraphFont">4-5-9</span></a><span class="s2033773DefaultParagraphFont">, if the repurchase agreements are entered into only with those primary reporting dealers that report to the Federal Reserve Bank of New York and with the one hundred largest United States commercial banks, as measured by domestic deposits; or (c) in shares of an open</span><span class="s2033773DefaultParagraphFont-000001">-</span><span class="s2033773DefaultParagraphFont">end, no</span><span class="s2033773DefaultParagraphFont-000001">-</span><span class="s2033773DefaultParagraphFont">load fund administered by an investment company registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933 and whose only investments are in securities described in (a) and repurchase agreements described in (b).</span></p><p dir="ltr" class="s2033773Normal"><span xml:space="preserve" class="s2033773000002"> </span></p><p dir="ltr" class="s2033773Normal"><span class="s2033773SCL">Source:</span><span xml:space="preserve" class="s2033773SCL-000003"> SL 1945, ch 359, § 1; SDC Supp 1960, § 48.0507; SL 1961, ch 258, § 1; SL 1967, ch 237, § 1; SL 1988, ch 44, § 1; SL 1995, ch 27.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 4-5-6 - Investment in securities of or guaranteed by United States, repurchase agreements, or shares of registered investment companies. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2033774Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2033774SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2033774CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; 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} </style></head><body><div><p dir="ltr" class="s2033774Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-6.1"><span class="s2033774SENU">4-5-6.1</span></a><span xml:space="preserve" class="s2033774SENU">. </span><span class="s2033774CL">Investment of public funds not needed for current operating expenses--Conditions.</span></p><p dir="ltr" class="s2033774Normal-000000"><span class="s2033774DefaultParagraphFont">In lieu of or in addition to other statutory authorization for the investment of public funds, any public funds that are not needed for current operating expenses may be invested in accordance with the following conditions:</span></p><p dir="ltr" class="s2033774Normal-000001"><span class="s2033774DefaultParagraphFont">(1)    The public funds shall initially be placed by the public funds depositor in a bank located in this state which offers Federal Deposit Insurance Corporation insurance on its deposits;</span></p><p dir="ltr" class="s2033774Normal-000001"><span class="s2033774DefaultParagraphFont">(2)    The selected bank shall arrange for the deposit of the public funds in one or more federally insured financial institutions wherever located in the United States, for the account of the public funds depositor;</span></p><p dir="ltr" class="s2033774Normal-000001"><span class="s2033774DefaultParagraphFont">(3)    On the same date that the public funds are deposited pursuant to subdivision (2) of this section, the selected bank shall receive an amount of deposits from customers of other federally insured financial institutions equal to the amount of the public funds initially placed by the public funds depositor;</span></p><p dir="ltr" class="s2033774Normal-000001"><span class="s2033774DefaultParagraphFont">(4)    Each such deposit shall be insured by the Federal Deposit Insurance Corporation;</span></p><p dir="ltr" class="s2033774Normal-000001"><span class="s2033774DefaultParagraphFont">(5)    The selected bank shall act as custodian for the public funds depositor with respect to the deposits placed in the depositor's account.</span></p><p dir="ltr" class="s2033774Normal"><span xml:space="preserve" class="s2033774000002"> </span></p><p dir="ltr" class="s2033774Normal"><span class="s2033774SCL">Source:</span><span xml:space="preserve" class="s2033774SCL-000003"> SL 2004, ch 61, § 1; SL 2012, ch 31, § 1.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 4-5-6 - Investment in securities of or guaranteed by United States, repurchase agreements, or shares of registered investment companies. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2033775Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2033775SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2033775CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2033775Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2033775DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2033775Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2033775Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2033775000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2033775SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2033775SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2033775Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-6.2"><span class="s2033775SENU">4-5-6.2</span></a><span xml:space="preserve" class="s2033775SENU">. </span><span class="s2033775CL">Investment in direct obligations of county, municipality, or school district or in bonds issued by state authority.</span></p><p dir="ltr" class="s2033775Normal-000000"><span xml:space="preserve" class="s2033775DefaultParagraphFont">In addition to the investments permitted by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-6"><span class="s2033775DefaultParagraphFont">4-5-6</span></a><span class="s2033775DefaultParagraphFont">, any public funds which are not needed for current operating expenses may be invested in:</span></p><p dir="ltr" class="s2033775Normal-000001"><span class="s2033775DefaultParagraphFont">(1)    Direct obligations of any county, municipality, or school district in the state; and</span></p><p dir="ltr" class="s2033775Normal-000001"><span class="s2033775DefaultParagraphFont">(2)    Bonds issued by the South Dakota Housing Development Authority, the South Dakota Health and Educational Facilities Authority, or the South Dakota Building Authority.</span></p><p dir="ltr" class="s2033775Normal-000002"><span class="s2033775DefaultParagraphFont">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.</span></p><p dir="ltr" class="s2033775Normal-000002"><span xml:space="preserve" class="s2033775DefaultParagraphFont">Moneys in any bond redemption fund may be invested only in the types of investments listed in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=4-5-6"><span class="s2033775DefaultParagraphFont">4-5-6</span></a><span class="s2033775DefaultParagraphFont">. 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.</span></p><p dir="ltr" class="s2033775Normal-000002"><span class="s2033775DefaultParagraphFont">No restriction in this section limits the investment authority otherwise granted under the laws of this state.</span></p><p dir="ltr" class="s2033775Normal"><span xml:space="preserve" class="s2033775000003"> </span></p><p dir="ltr" class="s2033775Normal"><span class="s2033775SCL">Source:</span><span xml:space="preserve" class="s2033775SCL-000004"> SL 2011, ch 26, § 1; SL 2012, ch 32, § 1.</span></p></div></body></html>