Oklahoma § 60-300.14 - Appropriation for expenditure or accumulation of

§ 60-300.14. Appropriation for expenditure or accumulation of

endowment fund – Rules of construction.

APPROPRIATION FOR EXPENDITURE OR ACCUMULATION OF ENDOWMENT FUND;

RULES OF CONSTRUCTION.

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

instrument, an institution may appropriate for expenditure or

accumulate so much of an endowment fund as the institution

determines is prudent for the uses, benefits, purposes, and duration

for which the endowment fund is established. Unless stated

otherwise in the gift instrument, the assets in an endowment fund

are donor-restricted assets until appropriated for expenditure by

the institution. In making a determination to appropriate or

accumulate, the institution shall act in good faith, with the care

that an ordinarily prudent person in a like position would exercise

under similar circumstances, and shall consider, if relevant, the

following factors:

(1) the duration and preservation of the endowment fund;

(2) the purposes of the institution and the endowment fund;

(3) general economic conditions;

Oklahoma Statutes - Title 60. Property

(4) the possible effect of inflation or deflation;

(5) the expected total return from income and the appreciation

of investments;

(6) other resources of the institution; and

(7) the investment policy of the institution.

(b) To limit the authority to appropriate for expenditure or

accumulate under subsection (a), a gift instrument must specifically

state the limitation.

(c) Terms in a gift instrument designating a gift as an

endowment, or a direction or authorization in the gift instrument to

use only “income”, “interest”, “dividends”, or “rents, issues, or

profits”, or “to preserve the principal intact”, or words of similar

import:

(1) create an endowment fund of permanent duration unless other

language in the gift instrument limits the duration or purpose of

the fund; and

(2) do not otherwise limit the authority to appropriate for

expenditure or accumulate under subsection (a) of this section.

Added by Laws 2007, c. 91, § 4, eff. Nov. 1, 2007.