Utah Code 51-7-14. Prudent man rule for management of investments — Sale of security or investment for less than cost

(1)

Subject to Subsection (2), a person selecting investments authorized by Sections 51-7-11 and 51-7-13 shall:

Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Proxy voting: The practice of allowing a legislator to cast a vote in committee for an absent legislator.
Public funds: means money, funds, and accounts, regardless of the source from which the money, funds, and accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body. See Utah Code 51-7-3
Public treasurer: includes the state treasurer and the official of any state board, commission, institution, department, division, agency, or other similar instrumentality, or of any county, city, school district, charter school, political subdivision, or other public body who has the responsibility for the safekeeping and investment of any public funds. See Utah Code 51-7-3
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)	select investments not for speculation but for investment; and

(b)

consider:

(i)	the probable safety of the capital;

(ii)	the probable benefits to be derived;

(iii)

the probable duration for which that investment may be made;

(iv)	the investment objectives specified in Section 51-7-17; and

(v)	the investment portfolio as a whole.

(2)

A public treasurer shall:

(a)	invest public funds in accordance with the prudent investor rule established in 9;

(b)	make public fund investment decisions with the sole purpose of maximizing the risk-adjusted return on the investments; and

(c)

to the extent practicable:

(i)

(A)	retain the right to vote investor proxies; or

(B)	if the investments are commingled with another investor’s funds, request the right to vote investor proxies; and

(ii)	ensure proxy voting is exercised to maximize risk-adjusted returns for the exclusive benefit of beneficiaries.

(3)	A public treasurer may sell or otherwise dispose of, at less than cost, any security or investment in which public funds under the public treasurer’s jurisdiction have been invested if that sale or other disposition tends to maximize the benefits that may be derived from the changed investment.

(4)

(a)	A public treasurer shall make proxy voting records available to the state treasurer upon the state treasurer’s request.

(b)	The state treasurer is subject to the same restrictions on disclosure of the proxy voting records as the originating public treasurer.

Amended by Chapter 242, 2023 General Session