This version is in effect until 06-01-2009 (A) In addition to an investment otherwise authorized by law or by the applicable gift instrument and without restriction to investments that a fiduciary may make, the governing board of an institution, subject to any specific limitations set forth in the applicable gift instrument or in an applicable law other than law relating to investments by a fiduciary, may do all of the following: (1) Invest and reinvest an institutional fund in any real or personal property considered advisable by the governing board, whether or not it produces a current return, including mortgages, stocks, bonds, debentures, and other securities of profit or nonprofit corporations, shares in or obligations of associations, partnerships, or individuals, and obligations of any government or political subdivision or instrumentality thereof; (2) Retain property contributed by a donor to an institutional fund for as long as the governing board considers advisable; (3) Include all or any part of an institutional fund in any pooled or common fund maintained by the institution; (4) Invest all or any part of an institutional fund in any other pooled or common fund available for investment, including shares or interests in regulated investment companies, mutual funds, common trust funds, investment partnerships, real estate investment trusts, or similar organizations in which funds are commingled and investment determinations are made by persons other than the governing board. (B) All institutional funds held by a governmental organization shall be audited by the auditor of state. Effective Date: 10-01-1996 This version is effective 06-01-2009 1715.54 Delegation of authority. (A)(1) Subject to any specific limitation set forth in a gift instrument or in any other provision of law , an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in doing all of the following: (a) Selecting an agent; (b) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; (c) Periodically reviewing the agent’s actions to monitor the agent’s performance and compliance with the scope and terms of the delegation. (2) An agent, in performing a delegated function, shall owe a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation. By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function. (3) An institution that complies with division (A)(1) of this section is not liable for the decisions or actions of an agent to which the function was delegated. (B) An institution may delegate management and investment functions to its committees, officers, or employees as otherwise provided by law. Effective Date: 10-01-1996; 2008 HB522 06-01-2009 Prev | Next________________________________________________________________________
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