Indiana Code 30-2-12-14. Duties of person or institution managing or investing institutional fund
(1) The intent of a donor expressed in a gift instrument.
Terms Used In Indiana Code 30-2-12-14
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Donor: The person who makes a gift.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- gift instrument: means a record, including any institutional solicitations, under which property is granted or transferred to or held by an institution as an institutional fund. See Indiana Code 30-2-12-3
- institution: means any of the following:
Indiana Code 30-2-12-5
- institutional fund: means a fund held by an institution exclusively for charitable purposes. See Indiana Code 30-2-12-6
- person: means an individual, a corporation, a business trust, an estate, a trust, a partnership, a limited liability company, an association, a joint venture, a public corporation, the state of Indiana, a state agency or instrumentality, a unit of local government, or any other legal or commercial entity. See Indiana Code 30-2-12-6.4
- Property: includes personal and real property. See Indiana Code 1-1-4-5
(3) The purposes of the institutional fund.
(b) A person who is responsible for managing or investing an institutional fund shall:
(1) comply with the duty of loyalty imposed by any law; and
(2) manage or invest the fund in good faith and with the care a prudent person acting in a like position would use under similar circumstances.
(c) An institution that manages or invests an institutional fund:
(1) may only incur costs that are appropriate and reasonable in relation to:
(A) the assets of;
(B) the purposes of; and
(C) the skills available to;
the institution; and
(2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(d) An institution may pool two (2) or more institutional funds for purposes of management or investment.
(e) Subject to the terms of a gift instrument, an institution or a person shall do the following:
(1) An institution that manages or invests an institutional fund shall consider the following factors:
(A) General economic conditions.
(B) The possible effects of inflation or deflation.
(C) The possible tax consequences of investment decisions or strategies.
(D) The role of each investment or course of action in relation to the overall investment portfolio of the institutional fund.
(E) The expected total return from income and the appreciation of investments.
(F) Other resources of the institution.
(G) The needs of the institution and institutional fund to make distributions and to preserve capital.
(H) The relationship or value of an asset to the charitable purposes of the institution.
(2) An institution shall make management and investment decisions about an individual asset:
(A) in the context of an institutional fund’s portfolio of investments as a whole and not in isolation; and
(B) as part of an overall investment strategy that has risk and return objectives reasonably suited to the institutional fund and to the institution.
(3) Except as otherwise provided in law, an institution may invest in any kind of property or type of investment.
(4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, due to special circumstances, the purposes of the institutional fund are better served without diversification.
(5) Within a reasonable time after receiving property, an institution shall:
(A) retain or dispose of the property; or
(B) otherwise rebalance the investment portfolio;
to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution.
(6) A person that has, or represents to have, special skills or expertise shall use the skills or expertise to manage or invest institutional funds.
(7) Notwithstanding any other provision in this chapter, an institution may retain property contributed by a donor to an institutional fund as long as the governing board of the institution considers it advisable.
As added by P.L.226-2007, SEC.17.