STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL
August 18, 1966
E.F. Wilkinson
State’s Attorney, Kingsbury County
DeSmet, South Dakota 57231
OFFICIAL OPINION NO. 67-68 pg. 20
Investments. Investment of County Funds.
You have asked whether or not county funds, such as the Courthouse Building Fund and other accumulated funds, could be invested in government insured loans, specifically the Farmers Home Administration Investment Program. It is my opinion that such funds may be invested in such programs within the limits of SDC 1960 Supp. 48.0507 as amended by Ch. 258, Session Laws of 1961. Said statute reads as follows:
"Investment of public funds. Any public funds which will not be needed during the current fiscal year to defray operating expenses, may be invested in securities of the United States redeemable within eighteen months from the date of purchase. 'Public funds' in this section shall include all general, special and other funds, regardless of source or purpose that may now or hereafter be owned, held or administered by this state or any political subdivision thereof, including counties, municipalities, townships and school districts, or by any officer, commission, board, bureau or agency of the state or political subdivision. Such investment shall be made as to state funds or the funds of any commission, board, bureau or agency thereof, only after the adoption of a proper resolution by the State Board of Finance, and as to the funds of counties, municipalities, townships, and school districts only after the adoption of a proper resolution by the governing body of such county, municipality, township or school district. Such resolution shall authorize the investment and shall specify the amount and kind of bonds to be purchased. The said State Board of Finance and the governing bodies of such counties, municipalities, townships and school districts shall, either at the time of purchase or at any other time, direct the time and manner of making application for redemption of such bonds. Provided, however, that permanent, trust, retirement and building funds may be invested in securities have a redeemable date beyond eighteen months. This section is supplemental to any other laws relating to the investment, deposit or administration of the public funds herein specified and shall supersede the provisions thereof only to the extent that such other laws "may restrict or prohibit investments in accordance with the provisions thereof. All investments made pursuant to this section may be deposited for safekeeping with any bank or trust company."
It is my opinion that "securities of the United States" as used in the first sentence of the above statute refers to any governmental loan which is fully insured, as the Farmers Home Administration Loan Program is. It is well known that "securities" are generally defined as written assurances for return or payment of money or evidence of indebtedness and as such the Farmers Home Administration Loan Program comes within the meaning of "securities of the United States". (38 Words and Phrases 469, Securities)
It is of special interest redeemable to note that date "building funds may be invested in securities having a redeemable date beyond eighteen months", under the above statute. Also see SDC 1960 Supp. 12.2303 as amended by Ch. 49, Session Laws of 1963.
