The state will invest its "oil money" in "money market instruments" in the Bank of North Dakota currently earning about 1 percent.
This speaks volumes about how much the state of North Dakota trusts the US economy going forward.
The lede:
The board's chairman, state Sen. Randy Christmann, R-Hazen, said he's reluctant to put much of the revenue into the stock market, even though similar funds in other energy-producing states have significant investments in stocks.
"I think stocks would be pretty limited," Christmann said. "Preserving that principal is the priority."
North Dakota voters last year approved a state constitutional amendment to create the new "Legacy Fund," which will get regular deposits equaling 30 percent of North Dakota's oil tax collections.
The first $34.3 million infusion was deposited in the state-owned Bank of North Dakota last week. It will earn less than 1 percent interest there.
The amendment bars the Legislature from spending any of the fund's principal or earnings until July 1, 2017.Very, very sad commentary. [2012 was an incredible year for investors.]
Afterward, lawmakers may spend money from the fund only with two-thirds approval of the North Dakota House and Senate, and they are barred from spending more than 15 percent of its principal during any two-year period.
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