South Carolina General Assembly
108th Session, 1989-1990

Bill 3989


                    Current Status

Bill Number:               3989
Ratification Number:       347
Act Number                 326
Introducing Body:          House
Subject:                   Relating to investments by political
                           subdivisions
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A326, R347, H3989)

AN ACT TO AMEND SECTION 6-5-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INVESTMENTS BY POLITICAL SUBDIVISIONS, SO AS TO ALLOW INVESTMENTS IN INVESTMENT COMPANIES OR INVESTMENT TRUSTS WHOSE PORTFOLIOS CONSIST SOLELY OF GOVERNMENT SECURITIES; AND TO AMEND SECTION 12-45-220, RELATING TO INVESTMENTS BY COUNTY TREASURERS, SO AS TO CONFORM THE LIST OF ALLOWED INVESTMENTS TO THOSE ALLOWED FOR POLITICAL SUBDIVISIONS INCLUDING THE ADDITIONAL ALLOWED INVESTMENTS FOR POLITICAL SUBDIVISIONS AUTHORIZED BY THIS ACT.

Be it enacted by the General Assembly of the State of South Carolina:

Investments

SECTION 1. Section 6-5-10 of the 1976 Code is amended by adding:

"(6) No load open-end or closed-end management type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or county treasurer if the particular portfolio of the investment company or investment trust in which the investment is made (i) is limited to obligations described in items (1), (2), and (5) of this subsection, and (ii) has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its assets by the amortized cost method."

Investments by county treasurers

SECTION 2. Section 12-45-220 of the 1976 Code is amended to read:

"Section 12-45-220. (A) A county treasurer may invest or reinvest any sum of money not necessary for current expenses in:

(1) obligations of the United States and its agencies;

(2) general obligations of this State or any of its political subdivisions;

(3) savings and loan associations if their deposits are insured by an agency of the federal government;

(4) certificates of deposit where the certificates are collaterally secured by securities of type described in items (1) and (2) of this subsection held by the third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest, but the collateral is not required to the extent the certificates of deposit are insured by an agency of the federal government; or

(5) no load open-end or closed-end management type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that county treasurer, if the particular portfolio of the investment company or investment trust in which the investment is (i) limited to obligations described in items (1) and (2) of this subsection, and (ii) have among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its assets by the amortized cost method. The portfolio may also consist of repurchase agreements when collateralized by obligations described in items (1) and (2) of this subsection.

(B) The governing body may delegate the investment authority provided above to the county treasurer who shall assume full responsibility for the investment transactions until the delegation of authority terminates or is revoked.

(C) The State Treasurer may assist local governments in investing funds that are temporarily in excess of operating needs.

(D) All interest and other earnings, when collected, must be added to the fund and paid out as other funds of the same sort are paid."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 20th day of February, 1990.