[§346C-6] Investments.  (a)  With theadvice of the director of finance to ensure investment soundness, the board oftrustees shall invest moneys in the long-term care benefits fund solely in:

(1)  Obligations of any of the following classes:

(A)  Obligations issued or guaranteed as toprincipal and interest by the United States or by any state thereof or by anymunicipal or political subdivision or school district of any of the foregoing;provided that the principal of and interest on such obligations are payable incurrency of the United States, or sovereign debt instruments issued by agenciesof, or guaranteed by foreign governments;

(B)  Revenue bonds, whether or not permitted byany other provision hereof, of the State or any political subdivision thereof,including the board of water supply of the city and county of Honolulu, andstreet or improvement district bonds of any district or project in the State;and

(C)  Obligations issued or guaranteed by anyfederal home loan bank including consolidated federal home loan bankobligations, the Home Owner's Loan Corporation, the Federal National MortgageAssociation, or the Small Business Administration;

(2)  Obligations eligible by law for purchase in theopen market by federal reserve banks;

(3)  Securities and futures contracts in which in theinformed opinion of the board of trustees it is prudent to invest funds of thesystem, including currency, interest rate, bond, and stock index futurescontracts and options on such contracts to hedge against anticipated changes incurrencies, interest rates, and bond and stock prices that might otherwise havean adverse effect upon the value of the system's securities portfolios; coveredput and call options on securities; and stock; whether or not the securities,stock, futures contracts, or options on futures are expressly authorized by orqualify under the foregoing paragraphs, and notwithstanding any limitation ofany of the foregoing paragraphs; and

(4)  Any other investments deemed secure on the adviceof the state director of finance.

(b)  Theboard of trustees shall submit to the legislature no later than January 1 ofevery year, an annual report for the preceding fiscal year.  The annual reportshall include information concerning:

(1)  Investments,including the types and amounts;

(2)  Current balance in the fund;

(3)  Projected liabilities for the upcoming year;

(4)  Current reserve requirements to meet theprojected liabilities for the upcoming year;

(5)  Amount of claims paid and taxes received in the yearimmediately preceding the issuance of the report; and

(6)  Any otheruseful information to determine the fiscal soundness of the fund. [L 2002, c245, pt of §2]