MARVIN MANDEL, Governor                                    245

LAW, THE TERMS OF THE APPLICABLE GIFT INSTRUMENT, OR THE
CHARTER OF THE INSTITUTION.

15-403. RESTRICTION IN GIFT INSTRUMENT.

SECTION 15-402 DOES NOT APPLY IF THE APPLICABLE GIFT
INSTRUMENT INDICATES THE INTENTION OF THE DONOR 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.

15-404. 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 LAS 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 OF NONPROFIT CORPORATIONS,
SHARES IN OR OBLIGATIONS OF ASSOCIATIONS, PARTNERSHIPS,
OR INDIVIDUALS, AND OBLIGATIONS OF ANY GOVERNMENT OR
SUBDIVISION OR INSTRUMENTALITY THEREOF;

(2)   RETAIN PROPERTY CONTRIBUTED BY A DONOR TO AN
INSTITUTIONAL FUND FOR AS LONG AS THE GOVERNING BOARD
DEEMS ADVISABLE;

(3)  INCLUDE ALL OR ANY PART OF AN INSTITUTIONAL FUND
IN ANY POOLED OR COMMON FUND MAINTAINED BY THE
INSTITUTION; AND

(4)  INVEST ALL OR ANY PART OF AN INSTITUTIONAL FUND
IN ANY OTHER POOLED OR COMMON FUND AVAILABLE FOR
INVESTMENT, INCLUDING SHARES OR INTERESTS IN REGULATED
INVESTMENT COMPANIES, MUTUAL FUNDS, COMMON TRUST FUNDS,
INVESTMENT PARTNERSHIPS, REAL ESTATE INVESTMENT TRUST, OR
SIMILAR ORGANIZATIONS IN WHICH FUNDS ARE COMMINGLED AND
INVESTMENT DETERMINATIONS ARE MADE BY PERSONS OTHER THAN
THE GOVERNING BOARD.