§ 35-10-6 - Investment of funds not immediately required.
SECTION 35-10-6
§ 35-10-6 Investment of funds notimmediately required. – (a) Except as otherwise provided in this chapter, any money not immediatelyrequired shall be invested for the benefit of the several funds in any securityor investment in which deposits of savings banks and participation deposits inbanks and trust companies may be legally invested; provided, that investmentsshall be made in securities as would be acquired by prudent persons ofdiscretion and intelligence in these matters, who are seeking a reasonableincome and the preservation of their capital.
(b) Notwithstanding subsection (a), the commission isauthorized and empowered to execute the disposition and investment of the fundswhich are within its control in accordance with the prudent person standard asdefined in this subsection. The commission shall adopt a statement ofinvestment objectives and policies consistent with the prudent person standard.Management and professional expenses incurred by the commission in thefurtherance of this section shall be paid from the funds in an amount requiredfor these expenses. For purposes of this subsection, the prudent personstandard shall be that standard of care employed solely in the interest of theparticipants and beneficiaries of the funds and:
(1) For the exclusive purpose of:
(i) Providing benefits to participants and theirbeneficiaries; and
(ii) Defraying reasonable expenses of administering the funds;
(2) With the care, skill, prudence, and diligence under thecircumstances then prevailing that a prudent person acting in a like capacityand familiar with these matters would use in the conduct of an enterprise of alike character and with like aims; and
(3) By diversifying the investments of the fund so as tominimize the risk of large losses, unless under the circumstances it is clearlyprudent not to do so.
(c) The state controller is authorized and directed to drawhis or her orders upon the general treasurer for the purchase of investments,upon receipt by him or her of properly authenticated vouchers signed by thechairperson, or a deputy treasurer in the event of the chairperson's absence orillness, and by the secretary of the commission. The proceeds from the sale ofinvestments shall be paid to the general treasurer for the benefit of theseveral funds on the forms prescribed and duly signed by the chairperson andsecretary of the commission.