Ch. 838                          MARVIN MANDEL, Governor                               1719

DONATION TO THE FUND AT THE TIME IT IS MADE, AND (3) EACH
ACCUMULATION MADE PURSUANT TO A DIRECTION IN THE
APPLICABLE GIFT INSTRUMENT AT THE TIME THE
ACCUMULATION IS ADDED TO THE FUND. THE DETERMINATION
OF HISTORIC DOLLAR VALUE MADE IN GOOD FAITH BY THE
INSTITUTION IS CONCLUSIVE.

(G) "GIFT INSTRUMENT" MEANS A WILL, DEED, GRANT,
CONVEYANCE, AGREEMENT, MEMORANDUM, WRITING, OR OTHER
GOVERNING DOCUMENT (INCLUDING THE TERMS OF ANY
INSTITUTIONAL SOLICITATIONS FROM WHICH AN INSTITUTIONAL
FUND RESULTED) UNDER WHICH PROPERTY IS TRANSFERRED TO
OR HELD BY AN INSTITUTION AS AN INSTITUTIONAL FUND.

7.  APPROPRIATION OF APPRECIATION.

THE GOVERNING BOARD MAY APPROPRIATE FOR EXPENDITURE
FOR THE USES AND PURPOSES FOR WHICH AN ENDOWMENT FUND
IS ESTABLISHED SO MUCH OF THE NET APPRECIATION, REALIZED
AND UNREALIZED, IN THE FAIR VALUE OF THE ASSETS OF AN
ENDOWMENT FUND OVER THE HISTORIC DOLLAR VALUE OF THE
FUND AS IS PRUDENT UNDER THE STANDARD ESTABLISHED BY
SECTION [[6]] 11. THIS SECTION DOES NOT LIMIT THE AUTHORITY
OF THE GOVERNING BOARD TO EXPEND FUNDS AS PERMITTED
UNDER OTHER LAW, THE TERMS OF THE APPLICABLE GIFT
INSTRUMENT, OR THE CHARTER OF THE INSTITUTION.

8.  RULE OF CONSTRUCTION.

SECTION 7 DOES NOT APPLY IF THE APPLICABLE GIFT
INSTRUMENT INDICATES THE DONOR'S INTENTION THAT NET
APPRECIATION SHALL NOT BE EXPENDED. A RESTRICTION UPON
THE EXPENDITURE OF NET APPRECIATION MAY NOT BE IMPLIED
FROM A DESIGNATION OF A GIFT AS AN ENDOWMENT, OR FROM A
DIRECTION OR AUTHORIZATION IN THE APPLICABLE GIFT
INSTRUMENT TO USE ONLY "INCOME," "INTEREST," "DIVIDENDS,"
OR "RENTS, ISSUES OR PROFITS," OR "TO PRESERVE THE
PRINCIPAL INTACT," OR A DIRECTION WHICH CONTAINS OTHER
WORDS OF SIMILAR IMPORT. THIS RULE OF CONSTRUCTION
APPLIES TO GIFT INSTRUMENTS EXECUTED OR IN EFFECT BEFORE
OR AFTER THE EFFECTIVE DATE OF THIS ACT.

9.  INVESTMENT AUTHORITY.

IN AN ADDITION TO AN INVESTMENT OTHERWISE AUTHORIZED
BY LAW OR BY THE APPLICABLE GIFT INSTRUMENT, AND
WITHOUT RESTRICTION TO INVESTMENTS A FIDUCIARY MAY
MAKE, THE GOVERNING BOARD, SUBJECT TO ANY SPECIFIC
LIMITATIONS SET FORTH IN THE APPLICABLE GIFT INSTRUMENT
OR IN THE APPLICABLE LAW OTHER THAN LAW RELATING TO
INVESTMENTS BY A FIDUCIARY, MAY:

(1) INVEST AND REINVEST AN INSTITUTIONAL FUND IN ANY
REAL OR PERSONAL PROPERTY DEEMED ADVISABLE BY THE
GOVERNING BOARD, WHETHER OR NOT IT PRODUCES A CURRENT
RETURN, INCLUDING MORTGAGES, STOCKS, BONDS, DEBENTURES,
AND OTHER SECURITIES OF PROFIT OR NONPROFIT
CORPORATIONS, SHARES IN OR OBLIGATIONS OF ASSOCIATIONS,
PARTNERSHIPS, OR INDIVIDUALS, AND OBLIGATIONS OF ANY