S.D. Admin. R. 20:07:03:12

Current through Register Vol. 50, page 162, June 24, 2024

Section 20:07:03:12 - Authorized general investments

A bank may purchase or hold the following for investment in accordance with SDCL 51A-4-25:

(1) Revenue bonds in any form issued by the United States; by any state or territory or its possession; by the District of Columbia; by any political subdivision of any state, territory, or possession; or by any public agency or instrumentality of one or more of any of these;

(2) Any securities acquired through foreclosure on collateral or acquired in good faith, by the way of compromise of a doubtful claim or to avoid a loss in connection with a debt previously contracted;

(3) Interest rate future contracts as a hedge;

(4) Corporate debt obligations which are rated in one of the top three rating bands by Moody's Investment Advisory Services or Standard and Poor's;

(5) Participation certificates in export programs sponsored by the United States or any of its agencies; and

(6) Annuities underwritten by any one company the value of which does not exceed 20 percent of the bank's capital stock and surplus and 10 percent of the bank's undivided profits as measured by the value of the annuities at the time of purchase.

S.D. Admin. R. 20:07:03:12

8 SDR 31, effective 9/30/1981; 12 SDR 151, 12 SDR 155, effective 7/1/1986; 13 SDR 120, effective 3/12/1987; 15 SDR 28, effective 8/21/1988; 21 SDR 50, effective 9/21/1994; 29 SDR 92, effective 12/24/2002.

General Authority: SDCL 51A-2-13, 51A-4-25.

Law Implemented: SDCL 51A-4-25.