72-5517. Same; permanent reserves; investment; interest prorated.
72-5517
72-5517. Same; permanent reserves; investment; interest prorated.The funds accumulated in the employees savings fund from such deductionsshall be handled as permanent reserves. These reserves shall be invested bythe investment committee only in assets eligible for the investment offunds of legal reserve life insurance companies in the state of Kansas asstated in K.S.A. 1968 Supp. 40-403c, with the exception of subsections (d),(i), (j), (k) and (l) of said section or as otherwise provided in this act:Provided, That total investments in common stocks permitted under suchsection may be made in an amount of up to twenty-five percent (25%) of thetotal book value of the fund and that the common stock of any bank which isa member of the federal deposit insurance corporation and has capitalfunds, represented by capital, surplus and undivided profits, of at leasttwenty million dollars ($20,000,000) shall be deemed eligible forinvestment under said section without regard to whether the common stock ofsuch bank is registered on a national exchange under the securitiesexchange act of 1934: Provided further, That the term "admittedassets" stated in such section shall be deemed to mean the amount of thefund, and the provisions relating to limitation of investments as a percentof surplus and loans to policyholders shall be inapplicable with respect toinvestment of the fund. The board shall employ or retain qualifiedinvestment counsel or may negotiate with a trust company to assist andadvise in the judicious investment of funds as herein provided for. Allinterest and income dividends received thereon shall be prorated at leastonce each twelve (12) months to the individual savings accounts. The boardshall turn over all securities purchased to the state treasurer forsafekeeping.
History: L. 1941, ch. 341, § 17; L. 1965, ch. 415, § 1; L. 1969, ch. 327, §6; April 25.