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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1984 

                        CHAPTER 382-H.F.No. 1944 
           An act relating to financial institutions; qualifying 
          obligations of the African Development Bank for public 
          and private investment; amending Minnesota Statutes 
          1982, sections 11A.24, subdivision 2; 50.14, by adding 
          a subdivision; and 61A.28, subdivision 2; Minnesota 
          Statutes 1983 Supplement, section 60A.11, subdivision 
          14. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 11A.24, 
subdivision 2, is amended to read: 
    Subd. 2.  [GOVERNMENT OBLIGATIONS.] The state board may 
invest funds in governmental bonds, notes, bills, mortgages and 
other fixed obligations, including guaranteed or insured issues 
of (a) the United States, its agencies or its instrumentalities, 
including financial contracts traded upon a contract market 
designated and regulated by a federal agency; (b) Canada and its 
provinces, provided the principal and interest is payable in 
United States dollars; (c) the states and their municipalities, 
political subdivisions, agencies or instrumentalities, where 
backed by the state's full faith and credit or if the issuer has 
not been in default in payments of principal or interest within 
the past ten years or in the case of revenue bonds the obligor 
has been completely self-supporting for the five prior years; 
(d) the International Bank for Reconstruction and Development, 
the Inter-American Development Bank, the Asian Development Bank, 
the African Development Bank, or any other United States 
Government sponsored organization of which the United States is 
a member, provided the principal and interest is payable in 
United States dollars and the issues are rated in the highest 
quality category by a nationally recognized rating agency.  
    Sec. 2.  Minnesota Statutes 1982, section 50.14, is amended 
by adding a subdivision to read: 
    Subd. 18.  Class sixteen shall be obligations payable in 
United States dollars issued or fully guaranteed by the African 
Development Bank.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, section 
60A.11, subdivision 14, is amended to read: 
    Subd. 14.  [CERTAIN BANK OBLIGATIONS.] (a) Certificates of 
deposits, time deposits, and bankers' acceptances issued by and 
other obligations guaranteed by any bank organized under the 
laws of the United States or any state thereof or of the 
Dominion of Canada or any province thereof.  A company may not 
invest more than five percent of its admitted assets in the 
obligations of any one bank and may not hold at any time more 
than ten percent of the outstanding obligations of any one 
bank.  A letter of credit issued by a member bank which 
qualifies under the guidelines of the National Association of 
Insurance Commissioners as a clean, irrevocable letter of credit 
which contains an "evergreen clause," may be accepted as a 
guaranty of other investments and in lieu of cash to secure 
loans of securities.  
    (b) Obligations issued or guaranteed by the International 
Bank for Reconstruction and Development, the Asian Development 
Bank, the Inter-American Development Bank, the African 
Development Bank, the Export-Import Bank, the World Bank or any 
United States government sponsored organization of which the 
United States is a member, if the principal and interest is 
payable in United States dollars.  A company may not invest more 
than five percent of its total admitted assets in the 
obligations of any one of these banks or organizations, and may 
not invest more than a total of 15 percent of its total admitted 
assets in the obligations of all these banks and organizations.  
     Sec. 4.  Minnesota Statutes 1982, section 61A.28, 
subdivision 2, is amended to read: 
    Subd. 2.  [GOVERNMENT OBLIGATIONS.] Bonds or other 
obligations of, or bonds or other obligations insured or 
guaranteed by, (a) the United States or any state thereof; (b) 
the Dominion of Canada or any province thereof; (c) any county, 
city, town, statutory city formerly a village, organized school 
district, municipality, or other civil or political subdivision 
of this state, or of any state of the United States or of any 
province of the Dominion of Canada; (d) any agency or 
instrumentality of the foregoing, including but not limited to, 
debentures issued by the federal housing administrator, 
obligations of national mortgage associations; and (e) 
obligations payable in United States dollars issued or fully 
guaranteed by the International Bank for Reconstruction and 
Development, the Inter-American Development Bank, the Asian 
Development Bank, the African Development Bank, the 
Export-Import Bank, or any other United States government 
sponsored organization of which the United States is a member; 
provided, that the life insurance company may not invest more 
than five percent of its total admitted assets in the 
obligations of any one of these banks or organizations and may 
not invest more than 15 percent of its total admitted assets in 
the obligations of all banks or organizations described in 
paragraph (e).  
    As used in this subdivision with respect to the United 
States or any agency or instrumentality of the United States, 
"bonds or other obligations" shall include rights or options to 
purchase the obligations if those rights or options are traded 
upon a contract market designated and regulated by a federal 
agency. 
    Approved April 16, 1984