246                                          LAWS OF MARYLAND                           [Ch. 11

15-405. DELEGATION OF INVESTMENT MANAGEMENT.

EXCEPT AS OTHERWISE PROVIDED BY THE APPLICABLE GIFT
INSTRUMENT OR BY APPLICABLE LAW RELATING TO GOVERNMENTAL
INSTITUTIONS OR FUNDS, THE GOVERNING BOARD MAY (1)
DELEGATE TO ITS COMMITTEES, OFFICERS, OR EMPLOYEES OF THE
INSTITUTION OR THE FUND, OR AGENTS, INCLUDING INVESTMENT
COUNSEL, THE AUTHORITY TO ACT IN PLACE OF THE BOARD IN
INVESTMENT AND REINVESTMENT OF INSTITUTIONAL FUNDS, (2)
CONTRACT WITH INDEPENDENT INVESTMENT ADVISORS, INVESTMENT
COUNSEL OR MANAGERS, BANKS, OR TRUST COMPANIES, SO TO
ACT, AND (3) AUTHORIZE THE PAYMENT OF COMPENSATION FOR
INVESTMENT ADISORY OR MANAGEMENT SERVICES.

15-406. STANDARD OF CONDUCT.

IN THE ADMINISTRATION OF THE POWERS TO APPROPRIATE
APPRECIATION, TO MAKE AND RETAIN INVESTMENTS, AND TO
DELEGATE INVESTMENT MANAGEMENT OF INSTITUTIONAL FUNDS,
MEMBERS OF A GOVERNING BOARD SHALL EXERCISE ORDINARY
BUSINESS CARE AND PRUDENCE UNDER THE FACTS AND
CIRCUMSTANCES PREVAILING AT THE TIME OF THE ACTION OR
DECISION. IN SO DOING THEY SHALL CONSIDER LONG AND SHORT
TERM NEEDS OF THE INSTITUTION IN CARRYING OUT ITS
EDUCATIONAL, RELIGIOUS, CHARITABLE, OR OTHER ELEEMOSYNARY
PURPOSES, ITS PRESENT AND ANTICIPATED FINANCIAL
REQUIREMENTS, EXPECTED TOTAL RETURN ON ITS INVESTMENTS,
PRICE LEVEL TRENDS, AND GENERAL ECONOMIC CONDITIONS.

15-407. RELEASE OF RESTRICTIONS ON USE OR INVESTMENT.
(A) WRITTEN CONSENT.

WITH THE WRITTEN CONSENT OF THE DONOR, THE
GOVERNING BOARD MAY RELEASE, IN WHOLE OR IN PART, A
RESTRICTION IMPOSED BY THE APPLICABLE GIFT INSTRUMENT ON
THE USE OR INVESTMENT OF AN INSTITUTIONAL FUND.

(B) WRITTEN CONSENT UNOBTAINABLE.

IE WRITTEN CONSENT OF THE DONOR CANNOT BE OBTAINED
BY REASON OF HIS DEATH, DISABILITY, UNAVAILABILITY, OR
IMPOSSIBILITY OF IDENTIFICATION, THE GOVERNING BOARD MAY
APPLY IN THE NAME OF THE INSTITUTION TO THE CIRCUIT COURT
OF A COUNTY OR TO AN EQUITY COURT OF BALTIMORE CITY,
DEPENDING UPON THE LOCATION OF THE OFFICE OF THE
GOVERNING BOARD, FOR RELEASE OF A RESTRICTION IMPOSED BY
THE APPLICABLE GIFT INSTRUMENT ON THE USE OR INVESTMENT
OF AN INSTITUTIONAL FUND. THE ATTORNEY GENERAL SHALL BE
NOTIFIED OF THE APPLICATION AND GIVEN AN OPPORTUNITY TO
BE HEARD. IF THE COURT FINDS THAT THE RESTRICTION IS
OBSOLETE, INAPPROPRIATE, OR IMPRACTICABLE, IT MAY BY
ORDER RELEASE THE RESTRICTION IN WHOLE OR IN PART. A
RELEASE UNDER THIS SUBSECTION MAY NOT CHANGE AN ENDOWMENT