23-44.1 - Investment of endowment funds, endowment income, and gifts; standard of care; liability; exemption from the Virginia Public Procurement Act.
§ 23-44.1. 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 College in accordance with this section and theprovisions 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 College, arisingfrom 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 College 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 College 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 theCollege the right or obligation to deliver or receive delivery of, or make orreceive 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 theCollege may grant or receive the right to purchase or sell, or pay or receivethe value of, any personal property asset including, without limitation, anyagreement 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 College is predicated upon anapproved management agreement between the College and the Commonwealth ofVirginia.
(2009, cc. 737, 767.)