58-27-101. Investment in money market funds. The term, money market fund, means any open end, diversified management type of mutual fund registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26, the moneys of which are invested only in the following kinds of investments, none of which shall mature more than three hundred ninety-seven days from the date of acquisition by the mutual fund:

(1) Securities issued or guaranteed as to principal and interest by the government of the United States or by agencies, government sponsored enterprises, or instrumentalities thereof;

(2) Certificates of deposit and bankers' acceptances of banks chartered by the United States or any state thereof or foreign branches of such banks;

(3) Commercial paper and other obligation of corporations chartered by or under the laws of the United States or any state thereof;

(4) Repurchase agreements with respect to those investments; and

(5) Dollar-denominated unsecured promissory obligations of foreign corporations which have an investment grade rating from at least one rating agency recognized by the Securities Valuation Office of the National Association of Insurance Commissioners.

Insurance companies may invest in the shares of any one or more money market funds the objectives of which include the maintenance of a stable net asset value of a specified dollar amount per share and the shareholders of which may withdraw the value of their shares by check, telephone, or mail.

In addition to the forty percent investment limitation available for money-market fund investments pursuant to § 58-27-57, an insurer may acquire additional money market funds pursuant to this section not to exceed ten percent of its admitted assets. The aggregate value of all money market shares which may be acquired under this section and § 58-27-57 may not exceed fifty percent of the insurance company's total admitted assets. At the time of the investment, no insurance company's investment may exceed five percent of the outstanding shares of any one money market fund. No investment may exceed the lesser of the amount in this section or the amount in § 58-27-53.

The limitations set forth in this section do not apply to investments in money market funds in which portfolio assets are invested entirely in the type of securities permitted pursuant to §§ 58-27-9 to 58-27-13, inclusive.

Source: SL 1992, ch 350, § 24; SL 1994, ch 384, § 5; SL 1997, ch 294, § 24.