58-5-156. Investment of funds by qualified education loan insurer--Limitations--Permitted rating categories.
Notwithstanding any other provision of Title 58 and in addition to any investment permitted pursuant to chapter 58-27, a qualified education loan insurer may invest funds in the following, and any such investment made by a qualified education loan insurer is not subject to any aggregate amount limitations or other investment limitations except as specifically provided below:
(1)A loan originated under the terms of the Higher Education Act of 1965, as amended;
(2)An education loan not originated under the Higher Education Act of 1965, as amended, the principal and interest of which may be insured or uninsured;
(3)A direct obligation of the United States of America or an obligation with respect to which the full and timely payment of principal and interest is unconditionally guaranteed by the United States of America;
(4)An interest bearing time or demand deposit, certificate of deposit, or a similar banking arrangement with any bank, trust company, national banking association, or other depository institution, provided that, at the time of deposit or purchase, if the investment is for a period exceeding one year, the depository institution shall have long-term unsecured debt rated by at least one nationally recognized statistical rating organization in a permitted rating category or, if the investment is for a period of less than one year, shall have short-term unsecured debt rated by at least one nationally recognized statistical rating organization in a permitted rating category;
(5)An obligation issued or guaranteed as to the principal and interest by any of the following:
(a)The Government National Mortgage Association;
(b)The Federal National Mortgage Association; or
(c)A Federal Farm Credit Bank, a Federal Intermediate Credit Bank, the Export-Import Bank of the United States, a Federal Land Bank, the Student Loan Marketing Association, the Federal Financing Bank, a Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, the Rural and Community Development Administration, or the Federal Farm Mortgage Acceptance Corporation, provided that any obligation described in this subdivision shall be rated by at least one nationally recognized statistical rating organization in a permitted rating category;
(6)A repurchase agreement or reverse repurchase agreement with any bank which is a member of the Federal Deposit Insurance Corporation or with any government bond dealer insured by the Securities Investor Protection Corporation, which agreement with a bank or government bond dealer is secured by any government obligation described in subdivision (3) of this section at a level sufficient to obtain a rating by at least one nationally recognized statistical rating organization in a permitted rating category, or with any broker or dealer the unsecured long-term debt of which is rated by at least one nationally recognized statistical rating organization in a permitted rating category;
(7)Any money market fund, including a qualified regulated investment company described in the Internal Revenue Service Notice 87-22, rated by at least one nationally recognized statistical rating organization in a permitted rating category;
(8)Any debt instrument, provided that the debt instrument is rated by at least one nationally recognized statistical rating organization in a permitted rating category; and
(9)Any investment agreement constituting a general obligation of an entity whose debt, unsecured securities, deposits, or claims paying ability is rated by at least one nationally recognized statistical rating organization in a permitted rating category.
For the purposes of this section, a permitted rating category is one of the four highest rating categories assigned long-term debt or an equivalent short-term category within either of which there may be subcategories or gradations indicating relative standing.
Source: SL 1998, ch 287, §3.
Structure South Dakota Codified Laws
Chapter 05 - Organization And General Powers Of Insurers
Section 58-5-1 - Scope of chapter.
Section 58-5-2 - "Stock" insurer defined.
Section 58-5-3 - "Mutual" insurer defined.
Section 58-5-4 - Applicability of corporation laws.
Section 58-5-5 - Incorporation of stock and mutual insurers.
Section 58-5-6 - Incorporators--Number and qualifications.
Section 58-5-6.1 - Domestication of foreign company--Requirements and procedure.
Section 58-5-7 - Articles of incorporation--Execution and acknowledgment--Contents.
Section 58-5-9 - Distribution of copies of approved articles.
Section 58-5-11 - Amendment of articles of incorporation--Submission and filing.
Section 58-5-13 - Deposit by incorporators of mutual insurer in lieu of bond--Amount.
Section 58-5-14 - Duration of bond or deposit by mutual insurer.
Section 58-5-15 - Commencement of solicitation by mutual insurer.
Section 58-5-17 - Applications for mutual insurance--Signature by applicant, coverage.
Section 58-5-18 - Applications for mutual insurance--Contents.
Section 58-5-20 - Transaction of business without certificate of authority as misdemeanor.
Section 58-5-22 - Expendable surplus funds required of domestic mutual insurer.
Section 58-5-23 - Determination by director as to weight to be given to insurance plans.
Section 58-5-28 - Eligibility to membership in domestic, foreign, or alien mutual insurer.
Section 58-5-29 - Contingent liability of members of mutual insurer--Exception.
Section 58-5-31 - Unrealized contingent liability of members of mutual not an asset of insurer.
Section 58-5-32 - Levy of assessment by mutual insurer for contingent liability.
Section 58-5-33 - Amount of assessment by mutual insurer.
Section 58-5-34 - Computation of assessment levied by mutual insurer.
Section 58-5-35 - Offsets not allowed against assessment by mutual insurer.
Section 58-5-36 - Lien of mutual insurer for levy of assessment for contingent liability.
Section 58-5-38 - Extinguishment of contingent liability must apply to all members and policies.
Section 58-5-39 - Bylaws of domestic mutual insurer--Adoption, modification, and revocation.
Section 58-5-40 - Meetings of members of domestic mutual insurer--Time, notice, quorum, and conduct.
Section 58-5-41 - Voting rights of members of domestic mutual insurer.
Section 58-5-44 - Funds of domestic mutual insurer--Deposit, custody, disbursement, and accounting.
Section 58-5-45 - Management of domestic mutual insurer.
Section 58-5-47 - Bylaws of domestic stock insurer--Adoption, modification, and revocation.
Section 58-5-48 - Bylaws of domestic stock insurer subject to approval of director.
Section 58-5-53 - Stockholder or member compelling board of directors to call annual meeting.
Section 58-5-54 - Place for holding meetings of stockholders or members--Waiver.
Section 58-5-57 - Reduction of capital of stock insurer--Disapproval by director, grounds.
Section 58-5-58 - Directors of domestic insurer--Number--Management of affairs of insurer.
Section 58-5-59 - Election of directors of domestic insurer--Qualifications.
Section 58-5-60 - Directors of domestic insurer--Terms of office.
Section 58-5-63 - Policy holding not a prohibited pecuniary interest.
Section 58-5-64 - Stock ownership not a prohibited pecuniary interest.
Section 58-5-65 - Other permitted pecuniary interest of director, officer, or employee of insurer.
Section 58-5-66 - Compensation of officers and employees of domestic insurer.
Section 58-5-67 - Pensions to officers and directors of domestic insurers.
Section 58-5-68 - "Equity security" defined.
Section 58-5-70 - Short sales by insider as misdemeanor--Delivery of securities sold, when required.
Section 58-5-71 - Profits from insider security transactions accruing to company.
Section 58-5-72 - Suit to recover insider profits accruing to company.
Section 58-5-73 - Exemption from insider trading restrictions.
Section 58-5-74 - Registered and closely held securities exempt from insider trading restrictions.
Section 58-5-75 - Brokers and market specialists exempt from insider trading restrictions.
Section 58-5-76 - Arbitrage transactions exempt from insider trading restrictions.
Section 58-5-77 - Rules and regulations on insider trading.
Section 58-5-80 - Bylaws to cover management during national emergency.
Section 58-5-81 - Quorum of directors during national emergency--Filling vacancies in board.
Section 58-5-83 - Succession to office during national emergency.
Section 58-5-84 - Principal place of business during national emergency.
Section 58-5-94 - Assets of domestic insurer to be maintained in state--Exceptions.
Section 58-5-99 - "Reciprocating state" defined.
Section 58-5-105 - Continued issuance of participating policies without authorization in articles.
Section 58-5-106 - Dividends on participating policies not contingent on renewal premiums.
Section 58-5-107 - Participating policyholder as member.
Section 58-5-111 - Repayment of loan by domestic insurer.
Section 58-5-113 - Illegal dividends--Revocation or suspension of certificate of authority.
Section 58-5-115 - Curing impairment of capital or surplus.
Section 58-5-116 - Assessment of stockholders to cure impairment of capital or surplus--Enforcement.
Section 58-5-117 - Levy of assessment by mutual insurer to cure deficiency.
Section 58-5-119 - Failure to cure deficiency, insurer deemed insolvent--Delinquency proceedings.
Section 58-5-121 - Approval by director of bulk reinsurance agreement--Disapproval.
Section 58-5-122 - Compensation for promoting bulk reinsurance prohibited.
Section 58-5-126 - Approval by director of bulk reinsurance by mutual insurer--Disapproval--Notice.
Section 58-5-127 - Compensation for promoting bulk reinsurance by mutual insurer.
Section 58-5-128 - Merger or consolidation of stock insurers.
Section 58-5-129 - Stock acquisition plan deemed merger--Approval required.
Section 58-5-130 - Compensation for promoting merger or consolidation of stock insurers.
Section 58-5-131 - Filing and hearing on consolidation or merger plan--Grounds for disapproval.
Section 58-5-132 - Participation by other states in hearing on merger or consolidation.
Section 58-5-133 - Disapproval of merger or consolidation--Notice to insurer.
Section 58-5-134 - Merger or consolidation of mutual insurers--Procedure.
Section 58-5-136 - Provisions applicable to mutual mergers and consolidations.
Section 58-5-138 - Conversion of mutual to stock insurer restricted.
Section 58-5-143 - Disclosure of certain material transactions required--Filing a report.
Section 58-5-144 - Confidentiality of disclosure report.
Section 58-5-145 - Exception from disclosure requirement--"Material acquisition" defined.
Section 58-5-146 - Types of asset acquisitions subject to chapter.
Section 58-5-147 - Types of asset dispositions subject to chapter.
Section 58-5-148 - Information required in report of material acquisition or disposition of assets.
Section 58-5-150 - Materiality of nonrenewals, cancellations or revisions.
Section 58-5-151 - Reporting material nonrenewal, cancellation or revision.
Section 58-5-152 - Required information in reporting material nonrenewal, cancellation, or revision.
Section 58-5-154 - "Qualified education loan insurer" defined.
Section 58-5-155 - Qualified education loan insurer subject to Title 58--Exceptions.
Section 58-5-157 - Investment of funds in securities.
Section 58-5-158 - Subsidiary investment to be counted as admitted asset.
Section 58-5-159 - Applicability of federal Bankruptcy Code.
Section 58-5-160 - Additional exemptions or exemption authority.
Section 58-5-161 - Definitions for §§ 58-5-161 through 58-5-171.
Section 58-5-162 - Corporate governance disclosure--Requirements and limitations.
Section 58-5-163 - Submission of disclosure--Requirement.
Section 58-5-164 - Information provided with disclosure--Appropriate corporate level.
Section 58-5-165 - Duplicate information not required--Documentation.
Section 58-5-166 - Content and maintenance--Promulgation of Rules.
Section 58-5-168 - Disclosure documents and other materials--Testimony prohibited.
Section 58-5-169 - Disclosure documents and other materials--Information sharing and receiving.