23-122.1 - Investment of endowment funds, endowment income, and gifts; standard of care; liability; exemption from the Virginia Public Procurement Act.
§ 23-122.1. Investment of endowment funds, endowment income, and gifts;standard of care; liability; exemption from the Virginia Public ProcurementAct.
A. The board of visitors shall invest and manage the endowment funds,endowment income, gifts, all other nongeneral fund reserves and balances, andlocal funds of or held by the University in accordance with this section andthe provisions of the Uniform Prudent Management of Institutional Funds Act(§ 55-268.11 et seq.).
B. No member of the board of visitors shall be personally liable for lossessuffered by an endowment fund, endowment income, gifts, all other nongeneralfund reserves and balances, or local funds of or held by the University,arising from investments made pursuant to the provisions of subsection A.
C. The investment and management of endowment funds, endowment income, gifts,all other nongeneral fund reserves and balances, or local funds of or held bythe University shall not be subject to the provisions of the Virginia PublicProcurement Act (§ 2.2-4300 et seq.).
D. In addition to the investment practices authorized by the Uniform PrudentManagement of Institutional Funds Act (§ 55-268.11 et seq.), the board ofvisitors may also invest or reinvest the endowment funds, endowment income,gifts, all other nongeneral fund reserves and balances, and local funds of orheld by the University in derivatives, options, and financial securities.
1. In this section, "derivative" means a contract or financial instrumentor a combination of contracts and financial instruments, including, withoutlimitation, any contract commonly known as a "swap," which gives theUniversity the right or obligation to deliver or receive delivery of, or makeor receive payments based on, changes in the price, value, yield or othercharacteristic of a tangible or intangible asset or group of assets, orchanges in a rate, an index of prices or rates, or other market indicator foran asset or a group of assets.
2. In this section, an "option" means an agreement or contract whereby theUniversity may grant or receive the right to purchase or sell, or pay orreceive the value of, any personal property asset including, withoutlimitation, any agreement or contract that relates to any security, contract,or agreement.
3. In this section, "financial security" means any note, stock, treasurystock, bond, debenture, evidence of indebtedness, certificate of interest,collateral-trust certificate, preorganization certificate of subscription,transferable share, investment contract, voting-trust certificate,certificate of deposit for a security, fractional undivided interest in oil,gas, or other mineral rights, any put, call, straddle, option, or privilegeon any security, certificate of deposit, or group or index of securities(including any interest therein or based on the value thereof), or any put,call, straddle, option, or privilege entered into on a national securitiesexchange relating to foreign currency, or in general, any interest orinstrument commonly known as a "security," or any certificate of interestor participation in, temporary or interim security for, receipt for,guarantee of, or warrant or right to subscribe to or purchase any of theforegoing.
E. The authority as provided in this section as it relates to nongeneral fundreserves and balances of or held by the University is predicated upon anapproved management agreement between the University and the Commonwealth ofVirginia.
(2009, cc. 737, 767.)