41-4109. INVESTMENT OF TRUST FUND. (1) The board may invest reserves and other funds available for the purpose in the trust fund of a joint public agency self-funded plan in the following kinds of investments only:
(a) General obligations of the United States government, or of any state, district, commonwealth or territory of the United States, or of any municipality, county, or other political subdivision or agency thereof.
(b) Obligations, the payment of principal and interest of which is guaranteed by any such government or agency.
(c) Corporate bonds and similar obligations meeting the requirements specified for investment of funds of insurers under section 41-711, Idaho Code.
(d) Collateral loans, payment of principal and interest of which is adequately secured by securities in which the trust fund could lawfully invest directly.
(e) Deposits, savings accounts, and share accounts in established banks and savings and loan associations located in the United States.
(2) In addition to investments excluded under subsection (1) of this section, the board is expressly prohibited from investing trust fund moneys in:
(a) Any loan to or security of any employer participating in the plan, or to or of any officer, director, subsidiary or affiliate of any such employer.
(b) The security of any person in which a member of the board, administrator, or any consultant of the plan has a direct or indirect material pecuniary interest.
(c) Real estate or loans thereon.
(d) Any personal loan, other than a collateral loan referred to in subsection (1)(d) of this section, but subject to paragraphs (a) and (b) of this subsection (2).
(3) All such investments shall be made and held in the name of the trust fund, and the interest and yield thereon shall inure to the account of the trust fund.
(4) No investment shall be made unless authorized in writing by the board and so shown in the records of the trust fund.
(5) Any person who authorizes any investment of trust fund moneys in violation of this section shall, in addition to other penalty therefor, be liable for all loss suffered by the trust fund on account of the investment.
(6) No investment made in violation of this section shall constitute an "asset" in any determination of the financial condition of the trust fund.
History:
[41-4109, added 2006, ch. 415, sec. 1, p. 1275.]