Standard of care for exercise of certain powers by governing board; additional considerations.
1. In the administration of the powers to appropriate appreciation, to make and retain investments, and to delegate management of the investment of institutional funds or of property held as an investment, members of a governing board shall exercise ordinary care and prudence, appropriate to the character of the institution, under the facts and circumstances prevailing at the time of the action or decision. In so doing, they shall consider present and future needs of the institution in carrying out its educational, religious, charitable or other eleemosynary purposes, present and anticipated financial requirements, expected total return on its investments, price level trends and general economic conditions.
2. Each investment must be considered in its relation to other investments made or contemplated.
Last modified: February 25, 2006