20 : 06 : 31 : 04.07 . Investment limitations. An investment made pursuant to §§ 20:06:31 : 04.04 to 20:06:31:04.06, inclusive, shall be subject to the following additional limitations:

1. (1) An investment in or loan upon the obligations of an institution other than an institution that issues mortgage-related securities may not exceed five percent of the assets of the trust;
2. (2) An investment in any one mortgage-related security may not exceed five percent of the assets of the trust;
3. (3) The aggregate total investment in mortgage-related securities may not exceed twenty-five percent of the assets of the trust; and
4. (4) Preferred or guaranteed shares issued or guaranteed by a solvent U.S. institution are permissible investments if all of the institution's obligations are eligible as investments under subdivisions 20:06:31:04.05(1) and 20:06:31:04.05(3), but may not exceed two percent of the assets of the trust.

Source: 44 SDR 71, effective October 23, 2017.

General Authority: SDCL 58-14-17.

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