51A-4-25. Bank investments--Restrictions set by rule--Limitations.

A bank may purchase for its own account investment securities and registered mutual funds that invest exclusively in securities of the United States or its agencies and annuities as defined in § 51A-4-25.1 under such limits and restrictions as the commission may prescribe by rule, promulgated pursuant to chapter 1-26. In no event may the total amount of the investment securities of any one obligor or maker held by the bank for its own account exceed twenty percent of the capital stock and surplus and ten percent of the undivided profits of such bank except as provided in § 51A-4-26.

Source: SL 1969, ch 11, § 4.21; SL 1986, ch 400, § 14; SL 1988, ch 377, § 96; SDCL, § 51-18-22; SL 1994, ch 362; SL 2002, ch 219, § 1; SL 2020, ch 4, § 28.

51A-4-25.1. Annuity defined.

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, unless otherwise provided for by Title 58. The annuity may not be subject to any surrender charge.

Source: SL 2002, ch 219, § 2; SL 2005, ch 252, § 1.