Oklahoma § 60-300.13 - Standard of conduct in managing and investing

§ 60-300.13. Standard of conduct in managing and investing

institutional fund.

STANDARD OF CONDUCT IN MANAGING AND INVESTING INSTITUTIONAL

FUND.

(a) Subject to the intent of a donor expressed in a gift

instrument, an institution, in managing and investing an

institutional fund, shall consider the charitable purposes of the

institution and the purposes of the institutional fund.

(b) In addition to complying with the duty of loyalty imposed

by law other than the Uniform Prudent Management of Institutional

Funds Act, each person responsible for managing and investing an

institutional fund shall manage and invest the fund in good faith

and with the care an ordinarily prudent person in a like position

would exercise under similar circumstances.

(c) In managing and investing an institutional fund, an

institution:

(1) may incur only costs that are appropriate and reasonable in

relation to the assets, the purposes of the institution, and 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 or more institutional funds for

purposes of management and investment.

(e) Except as otherwise provided by a gift instrument, the

following rules apply:

(1) In managing and investing an institutional fund, the

following factors, if relevant, must be considered:

(A) general economic conditions;

(B) the possible effect of inflation or deflation;

(C) the expected tax consequences, if any, of investment

decisions or strategies;

(D) the role that each investment or course of action

plays within the overall investment portfolio of the

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 the fund to make

distributions and to preserve capital; and

(H) an asset’s special relationship or special value, if

any, to the charitable purposes of the institution.

Oklahoma Statutes - Title 60. Property

(2) Management and investment decisions about an individual

asset must be made not in isolation but rather in the context of the

institutional fund’s portfolio of investments as a whole and as a

part of an overall investment strategy having risk and return

objectives reasonably suited to the fund and to the institution.

(3) Except as otherwise provided by law other than the Uniform

Prudent Management of Institutional Funds Act, an institution may

invest in any kind of property or type of investment consistent with

this section.

(4) An institution shall diversify the investments of an

institutional fund unless the institution reasonably determines

that, because of special circumstances, the purposes of the fund are

better served without diversification.

(5) Within a reasonable time after receiving property, an

institution shall make and carry out decisions concerning the

retention or disposition of the property or to rebalance a

portfolio, in order to bring the institutional fund into compliance

with the purposes, terms, and distribution requirements of the

institution as necessary to meet other circumstances of the

institution and the requirements of the Uniform Prudent Management

of Institutional Funds Act.

(6) A person that has special skills or expertise, or is

selected in reliance upon the person’s representation that the

person has special skills or expertise, has a duty to use those

skills or that expertise in managing and investing institutional

funds.

Added by Laws 2007, c. 91, § 3, eff. Nov. 1, 2007.