244                                          LAWS OF MARYLAND                           [Ch. 11

"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 RESULTS, UNDER WHICH PROPERTY IS TRANSFERRED TO OR
HELD BY AN INSTITUTION AS AN INSTITUTIONAL FUND.

(E) GOVERNING BOARD.

"GOVERNING BOARD" MEANS THE BODY RESPONSIBLE FOR THE
MANAGEMENT OF AN INSTITUTION OR OF AN INSTITUTIONAL FUND.

(E)       HISTORIC DOLLAR VALUE.

"HISTORIC DOLLAR VALUE" MEANS THE AGGREGATE FAIR
VALUE IN DOLLARS OF (1) AN ENDOWMENT FUND AT THE TIME IT
BECAME AH ENDOWMENT FUND, (2) EACH SUBSEQUENT 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.

(F)   INSTITUTIONAL.

"INSTITUTIONAL" MEANS AN INCORPORATED OS
UNINCORPORATED ORGANIZATION ORGANIZED AND OPERATED
EXCLUSIVELY FOR EDUCATIONAL, RELIGIOUS, CHARITABLE, OR
OTHER ELEEMOSYNARY PURPOSES, OR A GOVERNMENTAL
ORGANIZATION TO THE EXTENT THAT IT HOLDS FUNDS
EXCLUSIVELY FOR ANY OF THESE PURPOSES.

(G)   INSTITUTIONAL FUND.

"INSTITUTIONAL FUND" MEANS A FUND HELD BY AN
INSTITUTION FOR ITS EXCLUSIVE USE, BENEFIT, OR PURPOSES
BUT DOES NOT INCLUDE (1) A FUND HELD FOR AN INSTITUTION
BY A TRUSTEE THAT IS NOT AN INSTITUTION OR (2) A FUND IN
WHICH A BENEFICIARY THAT IS NOT AN INSTITUTION HAS AN
INTEREST, OTHER THAN POSSIBLE RIGHTS THAT COULD ARISE
UPON VIOLATION OR FAILURE OF THE PURPOSES OF THE FUND.

15-402. 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 §15-406.
THIS SECTION DOES NOT LIMIT THE AUTHORITY OF THE
GOVERNING BOARD TO EXPEND FUNDS AS PERMITTED UNDER OTHER