2005 Idaho Code - 41-4109 — INVESTMENT OF TRUST FUND

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 41
              JOINT PUBLIC AGENCY SELF-FUNDED HEALTH CARE PLANS
    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.