§128‑29.1. Authority to invest in certain common and preferred stocks.
In addition to all otherpowers of investment, the Board of Trustees, within the limitations set forthin this section, is also authorized to invest Retirement System funds instocks, preferred or common, issued or guaranteed by a corporation created orexisting under the laws of the United States or any state, district, orterritory thereof, provided:
(1) That for a period offive fiscal years for which the necessary statistical data are available nextpreceding the date of investment, such corporation as disclosed by itspublished fiscal annual statements shall have had an average annual net incomeplus its average annual fixed charges (as herein used, fixed charges shall meaninterest on funded or unfunded debt, contingent interest charges, amortizationof debt discount and expense and rentals for leased property and, in the case of consolidated earnings statements of parent and subsidiary corporationsshall include all fixed charges and preferred dividend requirement, if any, ofthe subsidiaries) at least equal to one and one‑half times the sum of itsaverage annual dividend requirement for preferred stock and its average annualfixed charges for the same period; however, during neither of the last twoyears of such period shall the sum of its annual net income and its annualfixed charges have been less than one and one‑half times the sum of itsdividend requirements for preferred stock and its fixed charges for the sameperiod;
(2) That suchcorporation shall have no arrears of dividends on its preferred stock;
(3) That such commonstock is registered on a national securities exchange as provided in theFederal Securities Exchange Act, but such registration shall not be required ofthe following stocks:
a. The common stock ofa bank which is a member of Federal Deposit Insurance Corporation and hascapital funds, represented by capital, surplus and undivided profits, of atleast twenty million dollars ($20,000,000);
b. The common stock ofa life insurance company which has capital funds represented by capital,special surplus funds and unassigned surplus, of at least fifty million dollars($50,000,000);
c. The common stock ofa fire or casualty insurance company, or a combination thereof, which hascapital funds represented by capital, net surplus and voluntary reserves, of atleast fifty million dollars ($50,000,000);
(4) That the preferredstock of such corporation, if any be outstanding, shall qualify for investmentunder this section;
(5) That suchcorporation, having no preferred stock outstanding, shall have had earnings forthe five fiscal years next preceding the date of investment of at least twicethe interest on all mortgages, bonds, debentures, and funded debts, if any, afterdeduction of the proper charges for replacements, depreciation, andobsolescence;
(6) That suchcorporation shall have paid a cash dividend on its common stock in each yearof the 10‑year period next preceding the date of investment and theaggregate net earnings available for dividends on the common stock of suchcorporation for the whole of such period shall have been at least equal to theamount of such dividends paid;
(7) That in applying theearnings test under this section to any issuing, assuming, or guaranteeingcorporation, where such corporation, shall have acquired its property or anysubstantial part thereof within a five‑year period immediately precedingthe date of investment by consolidation, merger, or by the purchase of all or asubstantial portion of the property of any other corporation or corporations,or shall have acquired the assets of any unincorporated business enterprise bypurchase or otherwise, net income, fixed charges and preferred dividends of theseveral predecessor or constituent corporations or enterprises shall beconsolidated and adjusted so as to ascertain whether or not the applicablerequirements of this section have been complied with;
(8) That the total valueof common and preferred stocks shall not exceed twenty‑five per centum(25%) of the total value of all invested funds of the Retirement System;provided, further:
a. Not more than oneand one‑half per centum (1 1/2%) of the total value of such funds shallbe invested in the stock of a single corporation, and provided further;
b. The total number ofshares in a single corporation shall not exceed eight per centum (8%) of theissued and outstanding stock of such corporation, and provided further;
c. As used in thissubdivision (8), value shall consist of the par value or unpaid balance of allunmatured or unpaid investments requiring the payment of a fixed amount atpayment date and the cost price of all other investments.
In order to carry out theduties and exercise the powers imposed and granted by this section, thechairman of the Board of Trustees is authorized to appoint an investmentcommittee consisting of five members, three of whom shall be members of theBoard of Trustees designated ex officio by the chairman and two of whom shallnot be members of the Board. Such investment committee shall have such powersand duties as the Board of Trustees may prescribe. The members of theinvestment committee shall receive for their services the same per diem andother allowances as are granted the members of the State Boards andcommissions generally. (1961, c. 626; 1965, c. 415, s. 2; 1973, c. 243, s.10.)
§128‑29.1. Authority to invest in certain common and preferred stocks.
In addition to all otherpowers of investment, the Board of Trustees, within the limitations set forthin this section, is also authorized to invest Retirement System funds instocks, preferred or common, issued or guaranteed by a corporation created orexisting under the laws of the United States or any state, district, orterritory thereof, provided:
(1) That for a period offive fiscal years for which the necessary statistical data are available nextpreceding the date of investment, such corporation as disclosed by itspublished fiscal annual statements shall have had an average annual net incomeplus its average annual fixed charges (as herein used, fixed charges shall meaninterest on funded or unfunded debt, contingent interest charges, amortizationof debt discount and expense and rentals for leased property and, in the case of consolidated earnings statements of parent and subsidiary corporationsshall include all fixed charges and preferred dividend requirement, if any, ofthe subsidiaries) at least equal to one and one‑half times the sum of itsaverage annual dividend requirement for preferred stock and its average annualfixed charges for the same period; however, during neither of the last twoyears of such period shall the sum of its annual net income and its annualfixed charges have been less than one and one‑half times the sum of itsdividend requirements for preferred stock and its fixed charges for the sameperiod;
(2) That suchcorporation shall have no arrears of dividends on its preferred stock;
(3) That such commonstock is registered on a national securities exchange as provided in theFederal Securities Exchange Act, but such registration shall not be required ofthe following stocks:
a. The common stock ofa bank which is a member of Federal Deposit Insurance Corporation and hascapital funds, represented by capital, surplus and undivided profits, of atleast twenty million dollars ($20,000,000);
b. The common stock ofa life insurance company which has capital funds represented by capital,special surplus funds and unassigned surplus, of at least fifty million dollars($50,000,000);
c. The common stock ofa fire or casualty insurance company, or a combination thereof, which hascapital funds represented by capital, net surplus and voluntary reserves, of atleast fifty million dollars ($50,000,000);
(4) That the preferredstock of such corporation, if any be outstanding, shall qualify for investmentunder this section;
(5) That suchcorporation, having no preferred stock outstanding, shall have had earnings forthe five fiscal years next preceding the date of investment of at least twicethe interest on all mortgages, bonds, debentures, and funded debts, if any, afterdeduction of the proper charges for replacements, depreciation, andobsolescence;
(6) That suchcorporation shall have paid a cash dividend on its common stock in each yearof the 10‑year period next preceding the date of investment and theaggregate net earnings available for dividends on the common stock of suchcorporation for the whole of such period shall have been at least equal to theamount of such dividends paid;
(7) That in applying theearnings test under this section to any issuing, assuming, or guaranteeingcorporation, where such corporation, shall have acquired its property or anysubstantial part thereof within a five‑year period immediately precedingthe date of investment by consolidation, merger, or by the purchase of all or asubstantial portion of the property of any other corporation or corporations,or shall have acquired the assets of any unincorporated business enterprise bypurchase or otherwise, net income, fixed charges and preferred dividends of theseveral predecessor or constituent corporations or enterprises shall beconsolidated and adjusted so as to ascertain whether or not the applicablerequirements of this section have been complied with;
(8) That the total valueof common and preferred stocks shall not exceed twenty‑five per centum(25%) of the total value of all invested funds of the Retirement System;provided, further:
a. Not more than oneand one‑half per centum (1 1/2%) of the total value of such funds shallbe invested in the stock of a single corporation, and provided further;
b. The total number ofshares in a single corporation shall not exceed eight per centum (8%) of theissued and outstanding stock of such corporation, and provided further;
c. As used in thissubdivision (8), value shall consist of the par value or unpaid balance of allunmatured or unpaid investments requiring the payment of a fixed amount atpayment date and the cost price of all other investments.
In order to carry out theduties and exercise the powers imposed and granted by this section, thechairman of the Board of Trustees is authorized to appoint an investmentcommittee consisting of five members, three of whom shall be members of theBoard of Trustees designated ex officio by the chairman and two of whom shallnot be members of the Board. Such investment committee shall have such powersand duties as the Board of Trustees may prescribe. The members of theinvestment committee shall receive for their services the same per diem andother allowances as are granted the members of the State Boards andcommissions generally. (1961, c. 626; 1965, c. 415, s. 2; 1973, c. 243, s.10.)
§128‑29.1. Authority to invest in certain common and preferred stocks.
In addition to all otherpowers of investment, the Board of Trustees, within the limitations set forthin this section, is also authorized to invest Retirement System funds instocks, preferred or common, issued or guaranteed by a corporation created orexisting under the laws of the United States or any state, district, orterritory thereof, provided:
(1) That for a period offive fiscal years for which the necessary statistical data are available nextpreceding the date of investment, such corporation as disclosed by itspublished fiscal annual statements shall have had an average annual net incomeplus its average annual fixed charges (as herein used, fixed charges shall meaninterest on funded or unfunded debt, contingent interest charges, amortizationof debt discount and expense and rentals for leased property and, in the case of consolidated earnings statements of parent and subsidiary corporationsshall include all fixed charges and preferred dividend requirement, if any, ofthe subsidiaries) at least equal to one and one‑half times the sum of itsaverage annual dividend requirement for preferred stock and its average annualfixed charges for the same period; however, during neither of the last twoyears of such period shall the sum of its annual net income and its annualfixed charges have been less than one and one‑half times the sum of itsdividend requirements for preferred stock and its fixed charges for the sameperiod;
(2) That suchcorporation shall have no arrears of dividends on its preferred stock;
(3) That such commonstock is registered on a national securities exchange as provided in theFederal Securities Exchange Act, but such registration shall not be required ofthe following stocks:
a. The common stock ofa bank which is a member of Federal Deposit Insurance Corporation and hascapital funds, represented by capital, surplus and undivided profits, of atleast twenty million dollars ($20,000,000);
b. The common stock ofa life insurance company which has capital funds represented by capital,special surplus funds and unassigned surplus, of at least fifty million dollars($50,000,000);
c. The common stock ofa fire or casualty insurance company, or a combination thereof, which hascapital funds represented by capital, net surplus and voluntary reserves, of atleast fifty million dollars ($50,000,000);
(4) That the preferredstock of such corporation, if any be outstanding, shall qualify for investmentunder this section;
(5) That suchcorporation, having no preferred stock outstanding, shall have had earnings forthe five fiscal years next preceding the date of investment of at least twicethe interest on all mortgages, bonds, debentures, and funded debts, if any, afterdeduction of the proper charges for replacements, depreciation, andobsolescence;
(6) That suchcorporation shall have paid a cash dividend on its common stock in each yearof the 10‑year period next preceding the date of investment and theaggregate net earnings available for dividends on the common stock of suchcorporation for the whole of such period shall have been at least equal to theamount of such dividends paid;
(7) That in applying theearnings test under this section to any issuing, assuming, or guaranteeingcorporation, where such corporation, shall have acquired its property or anysubstantial part thereof within a five‑year period immediately precedingthe date of investment by consolidation, merger, or by the purchase of all or asubstantial portion of the property of any other corporation or corporations,or shall have acquired the assets of any unincorporated business enterprise bypurchase or otherwise, net income, fixed charges and preferred dividends of theseveral predecessor or constituent corporations or enterprises shall beconsolidated and adjusted so as to ascertain whether or not the applicablerequirements of this section have been complied with;
(8) That the total valueof common and preferred stocks shall not exceed twenty‑five per centum(25%) of the total value of all invested funds of the Retirement System;provided, further:
a. Not more than oneand one‑half per centum (1 1/2%) of the total value of such funds shallbe invested in the stock of a single corporation, and provided further;
b. The total number ofshares in a single corporation shall not exceed eight per centum (8%) of theissued and outstanding stock of such corporation, and provided further;
c. As used in thissubdivision (8), value shall consist of the par value or unpaid balance of allunmatured or unpaid investments requiring the payment of a fixed amount atpayment date and the cost price of all other investments.
In order to carry out theduties and exercise the powers imposed and granted by this section, thechairman of the Board of Trustees is authorized to appoint an investmentcommittee consisting of five members, three of whom shall be members of theBoard of Trustees designated ex officio by the chairman and two of whom shallnot be members of the Board. Such investment committee shall have such powersand duties as the Board of Trustees may prescribe. The members of theinvestment committee shall receive for their services the same per diem andother allowances as are granted the members of the State Boards andcommissions generally. (1961, c. 626; 1965, c. 415, s. 2; 1973, c. 243, s.10.)
