Utah § 51-8-202 - Standards for managing and investing an institutional fund.
Full text of Utah Utah Code § 51-8-202 — Standards for managing and investing an institutional fund., with citation guidance and answers to common questions.
§ 51-8-202. Standards for managing and investing an institutional fund.
51-8-202.
Standards for managing and investing an institutional fund.
(1)
In managing and investing an institutional fund, an institution:
(a)
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
(b)
shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(2)
An institution may pool two or more institutional funds for purposes of management and investment.
(3)
Except as otherwise provided by a gift instrument, the following rules apply:
(a)
In managing and investing an institutional fund, the following factors, if relevant, must be considered:
(i)
general economic conditions;
(ii)
the possible effect of inflation or deflation;
(iii)
the expected tax consequences, if any, of investment decisions or strategies;
(iv)
the role that each investment or course of action plays within the overall investment portfolio of the fund;
(v)
the expected total return from income and the appreciation of investments;
(vi)
other resources of the institution;
(vii)
the needs of the institution and the fund to make distributions and to preserve capital; and
(viii)
an asset's special relationship or special value, if any, to the charitable purposes of the institution.
(b)
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.
(c)
Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with the standards of this section.
(d)
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.
(e)
Within a reasonable time after receiving property, an institution shall make and implement 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, distribution requirements, and other circumstances of the institution and the requirements of this chapter.
(f)
A person who 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 special skills or that expertise in managing and investing institutional funds.
Section 51-8-202 ("Standards for managing and investing an institutional fund.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 51-8-202?
A common citation format is "Utah Code § 51-8-202" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 51-8-202 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
