35-314. Equity investment of trust and treasury
monies; definition
A. The state treasurer may invest and reinvest monies in equity securities for any
fund for which equity investment is authorized.
B. The state treasurer shall exercise prudence, judgment and care under the
prevailing circumstances when investing in equity securities and may reduce the portion
of equity securities held by any fund in order to avoid a reduction in current return on
investments.
C. Equity securities that are eligible for purchase are restricted to stocks listed
on any national stock exchange or eligible for trading through the United States national
association of securities dealers automated quotation system, or successor institutions,
except as may be prohibited by general criteria or by a restriction on investment in a
specific security adopted pursuant to this section.
D. Not more than five per cent of a fund at cost may be invested in equity
securities issued by the same institution, agency or corporation, other than securities
issued as direct obligations of and fully guaranteed by the United States government or
any of its agencies, sponsored agencies, corporations, sponsored corporations or
instrumentalities.
E. For purposes of this section "equity securities" means shares of stock,
certificates of stock or any other evidence of equity interest in a corporation.
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