S.D. Admin. R. 20:06:31:04.09

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:31:04.09 - Equity interests

Trust investments shall be made in accordance with the following requirements:

(1) Investments in common shares or partnership interests of a solvent U.S. institution are permissible if, its obligations and preferred shares, if any, are eligible as investments under this section; and the equity interests of the institution, except an insurance company, are registered on a national securities exchange as provided in the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a to 78kk or otherwise registered pursuant to that Act, and if otherwise registered, price quotations for them are furnished through a nationwide automated quotations system approved by the Financial Industry Regulatory Authority, or successor organization. A trust may not invest in equity interests under this section an amount exceeding one percent of the assets of the trust even though the equity interests are not so registered and are not issued by an insurance company;

(2) Investments in common shares of a solvent institution organized under the laws of a country that is a member of the Organization for Economic Cooperation and Development are permissible if all its obligations are rated A or higher, or the equivalent, by a rating agency recognized by the Securities Valuation Office of the National Association of Insurance Commissioners and the equity interests of the institution are registered on a securities exchange regulated by the government of a country that is a member of the Organization for Economic Cooperation and Development; and

(3) An investment in or loan upon any one institutions outstanding equity interests may not exceed one percent of the assets of the trust. The cost of an investment in equity interests, when added to the aggregate cost of other investments in equity interests, may not exceed ten percent of the assets in the trust.

S.D. Admin. R. 20:06:31:04.09

44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-11, 58-14-13, 58-14-17, 58-14-20.