Montana Code 20-9-604. Gifts, legacies, devises, and administration of endowment fund
20-9-604. Gifts, legacies, devises, and administration of endowment fund. (1) The trustees of a district may accept gifts, legacies, and devises, subject to the conditions imposed by the deed of the donor or the will of the testator or without any conditions imposed. Unless otherwise specified by the donor, devisor, or testator, when a district receives a gift, legacy, or devise, the trustees may deposit the gift, legacy, devise, or the proceeds in any budgeted or nonbudgeted fund at the discretion of the trustees and may thereafter transfer any portion of the gift, legacy, devise, or proceeds to any other fund at the discretion of the trustees.
Terms Used In Montana Code 20-9-604
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Devise: To gift property by will.
- district: means the territory, regardless of county boundaries, organized under the provisions of this title to provide public educational services under the jurisdiction of the trustees prescribed by this title. See Montana Code 20-6-101
- Donor: The person who makes a gift.
- fund: means a separate detailed account of receipts and expenditures for a specific purpose as authorized by law or by the superintendent of public instruction under the provisions of subsection (2). See Montana Code 20-9-201
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Legacy: A gift of property made by will.
- nonbudgeted fund: means any fund for which a budget is not required in order to expend money on deposit in the fund. See Montana Code 20-9-201
- Principal: means a person who holds a valid class 3 Montana teacher certificate with an applicable principal's endorsement that has been issued by the superintendent of public instruction under the provisions of this title and the policies adopted by the board of public education and who has been employed by a district as a principal. See Montana Code 20-1-101
- school: means an institution for the teaching of children that is established and maintained under the laws of the state of Montana at public expense. See Montana Code 20-6-501
- Testator: A male person who leaves a will at death.
- Trustees: means the governing board of a district. See Montana Code 20-1-101
(2)If the trustees accept a gift, legacy, or devise pursuant to subsection (1) and if the donor, devisor, or testator specifies the gift, legacy, or devise for an endowment, the trustees shall deposit the gift, legacy, devise, or proceeds in an endowment fund and shall administer the endowment fund so as to preserve the principal from loss, and only the income from the fund may be appropriated for any purpose. Money deposited in the endowment fund must be invested by the trustees according to the provisions of the Uniform Management of Institutional Funds Act, Title 72, chapter 30. All interest collected on the deposits or investments must be credited to the endowment fund.
(3)Whenever a district has been abandoned, the endowment fund of the abandoned district must be transferred and placed in the endowment fund in the district to which the territory is attached.
(4)As the custodian of the endowment fund, the county treasurer is liable on the treasurer’s official bond for the endowment fund of any district of the county. By July 20, the county treasurer shall report to the trustees of each district on the condition of its endowment fund, including the status of the investments that have been made with the money of the fund. The county treasurer shall also include the endowment fund in the treasurer’s reports to the board of county commissioners.
(5)The trustees of any district having an endowment fund shall provide suitable memorials for all persons or associations of persons making gifts to the district that become a part of the endowment fund.
(6)The trustees of a district that previously deposited donated funds in an endowment fund without specific instruction by the donor, devisor, or testator may move the donated funds and any accumulated interest to any other budgeted or nonbudgeted fund of the district and may spend donated funds and any accumulated interest unless restricted by condition imposed by the donor, devisor, or testator.
(7)The legislature encourages school district trustees to adopt a gift acceptance policy to determine the suitability of accepting gifts under this section.