NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

CHAPTER 30

SENATE BILL 88

AN ACT TO BROADEN PERMISSIBLE INVESTMENTS FOR NORTH CAROLINA FIREMEN'S PENSION FUND.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 118-22 is hereby amended and rewritten to read as follows:

"§ 118-22.  State Treasurer to be custodian of fund; appropriations; contributions to fund; expenditures and investments. — The State Treasurer shall be the custodian of the North Carolina Firemen's Pension Fund. The appropriations made by the General Assembly out of the general fund to provide money for administrative expenses shall be handled in the same manner as any other general fund appropriation. One fourth of the appropriation made out of the general fund to provide for the financing of the pension fund shall be transferred quarterly to a special fund to be known as the North Carolina Firemen's Pension Fund. There shall be set up in the State Treasurer's office a special fund to be known as the North Carolina Firemen's Pension Fund, and all contributions made by the members of this pension fund shall be deposited in said special fund. All expenditures for refunds, investments or benefits shall be in the same manner as expenditures of other special funds. The interest on such investments shall be credited to this special fund. The State Treasurer shall have authority to invest all moneys in said fund not immediately needed for refunds or benefits, in any of the following:

(1)        Obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States;

(2)        Obligations of the federal intermediate credit banks, federal home loan banks, Federal National Mortgage Association, banks for cooperatives, and federal land banks;

(3)        Obligations of the State of North Carolina;

(4)        General obligations of other states of the United States;

(5)        General obligations of cities, counties, and special districts in North Carolina;

(6)        Obligations of any corporation within the United States if such obligations bear either of the three highest ratings of at least two nationally recognized rating services;

(7)        Notes secured by mortgages on real estate located within the State of North Carolina and insured by the Federal Housing Commissioner, or his successor or assigns, or in debentures issued by such Commissioners, which are guaranteed as to principal and interest by the United States or by the Federal Housing Administration, an agency of the United States Government, or by some other agency of the United States Government;

(8)        In certificates of deposit in any bank or trust company authorized to do business in North Carolina in which the deposits are guaranteed by the Federal Deposit Insurance Corporation not to exceed the sum of twenty thousand dollars ($20,000.00) in any one bank or trust company; and

(9)        In the shares of federal savings and loan associations and State chartered building or savings and loan associations in which deposits are guaranteed by the Federal Savings and Loan Insurance Corporation, not to exceed twenty thousand dollars ($20,000.00) in any one of such associations.

Subject to the limitations set forth above, the Treasurer shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the funds created herein shall have been invested, as well as the proceeds of said investments and any moneys belonging to said funds."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 26th day of February, 1971.