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. (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. (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.

Source: 13 SDR 21, effective August 25, 1986; 14 SDR 46, effective September 28, 1987; 21 SDR 36, effective August 31, 1994; 39 SDR 55, effective October 8, 2012.

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

Law Implemented: SDCL 51A-4-25.