12F.4 - PROHIBITED INVESTMENTS -- DIVESTMENT.
12F.4 PROHIBITED INVESTMENTS -- DIVESTMENT.
1. The public fund shall not acquire publicly traded securities
of a company on the public fund's most recent scrutinized companies
list with active business operations so long as such company remains
on the public fund's scrutinized companies list as a company with
active business operations as provided in this section.
2. a. The public fund shall sell, redeem, divest, or withdraw
all publicly traded securities of a company on the public fund's list
of scrutinized companies with active business operations, so long as
the company remains on that list, no sooner than ninety days, but no
later than eighteen months, following the first written notice sent
to the scrutinized company with active business operations as
required by section 12F.3.
b. This subsection shall not be construed to require the
premature or otherwise imprudent sale, redemption, divestment, or
withdrawal of an investment, but such sale, redemption, divestment,
or withdrawal shall be completed as provided by this subsection.
3. The requirements of this section shall not apply to the
following:
a. A company which the United States government affirmatively
declares to be excluded from its present or any future federal
sanctions regime relating to Sudan.
b. Indirect holdings of a scrutinized company with active
business operations. The public fund shall, however, submit letters
to the managers of such investment funds containing companies with
scrutinized active business operations requesting that they consider
removing such companies from the fund or create a similar fund with
indirect holdings devoid of such companies. If the manager creates a
similar fund, the public fund is encouraged to replace all applicable
investments with investments in the similar fund consistent with
prudent investing standards. Section History: Recent Form
2007 Acts, ch 39, §4
Referred to in § 12F.5, 12F.7