Expenditure of endowment fund assets; determination of fund
historic value
Sec. 8. (a) The governing board may appropriate for expenditure
for the uses and purposes for which an endowment fund is
established as much of the net appreciation, realized and unrealized,
in the fair value of the assets of an endowment fund over the historic
dollar value of the endowment fund (as determined under subsection
(b)) as is prudent under the standard established by section 12 of this
chapter. This section does not limit the authority of the governing
board to expend funds as permitted under other law, the terms of the
applicable gift instrument, or the charter of the institution.
(b) The governing board shall determine the historic dollar value
of the endowment fund, which is the aggregate fair value in dollars
of:
(1) an endowment fund at the time it became an endowment
fund;
(2) each subsequent donation to the endowment fund at the time
the donation is made; and
(3) each accumulation made under the applicable gift
instrument at the time the accumulation is added to the
endowment fund. The determination of historic dollar value
made in good faith by the governing board is conclusive.
As added by P.L.268-1989, SEC.1.
Last modified: May 27, 2006