S.D. Admin. R. 20:07:03:12.01

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

Section 20:07:03:12.01 - Investment in mutual funds

A bank may purchase or hold shares of registered mutual funds that invest in authorized general investments as provided in subdivision 20:07:03:12(1). Those funds that engage in financial futures, options, or repurchase agreements may be purchased if they meet the following criteria:

(1) The fund is subject to investment guidelines that limit its investment in hedging and yield enhancement activities to 25 percent of the fund; and

(2) No more than 5 percent of the fund is invested in any single issue.

A bank may invest up to 100 percent of the bank's capital stock and surplus in mutual funds.

S.D. Admin. R. 20:07:03:12.01

13 SDR 21, effective 8/25/1986; 14 SDR 46, effective 9/28/1987; 21 SDR 36, effective 8/31/1994; 39 SDR 55, effective 10/8/2012.

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

Law Implemented: SDCL 51A-4-25.