New Mexico § 21-1-38 - Definition; requirements for adoption of investment policy for investing endowment funds

§ 21-1-38. Definition; requirements for adoption of investment policy for investing endowment funds

A. As used in this section: (1) “ endowment funds ” means funds: (a) acquired by gift by an educational institution with respect to which the donors

or other outside agencies have stipulated as a condition of the gift, and the stipulation

is expressed specifically in the gift instrument, that the principal is to be maintained

and invested for the purpose of producing current and future income that may either

be added to the principal or expended, and the maintenance of the principal may be

either: 1) held in perpetuity; or 2) expended after the passage of a stated period

of time or upon the happening of a specified event; and (b) notwithstanding the source of acquisition, that the governing board of the educational

institution has determined and has designated by a written instrument, either revocable

or irrevocable, to be retained for long-term investment; and (2) “ educational institution ” means an educational institution designated in Article 12, Section 11 of the constitution of New Mexico and any post-secondary educational institution, which term includes an academic,

vocational, technical, business, professional or other school, college or university

or other organization or person offering or purporting to offer courses, instruction,

training or education through correspondence or in person to any individual within

this state over the compulsory school attendance age, if that post-secondary educational

institution is directly supported in whole or in part by state or local taxation. B. The board of finance, as that term is defined in Section 6-10-9 NMSA 1978 , for each of the educational institutions: (1) shall adopt regulations governing the investment and distribution of endowment

funds by the institution's board of finance, which regulations shall provide at least

for: (a) the application of the standard of loyalty described in Section 45-7-606 NMSA 1978 and the Uniform Prudent Management of Institutional Funds Act; (b) the appointment of an investment advisory committee made up of individuals having

demonstrated experience and skill in the field of the investment of endowment funds;

and (c) the development of a comprehensive investment policy for the investment of endowment

funds by the institution, with the advice and upon the recommendation of the investment

committee; and (2) may employ an institutional endowment funds investment manager and delegate to

the manager the power to make purchases, sales, exchanges, investments and reinvestments

of endowment funds.