2005 Illinois Code - Chapter 760 Trusts and Fiduciaries 760 ILCS 50/ Uniform Management of Institutional Funds Act.
(760 ILCS 50/1) (from Ch. 32, par. 1101)
Sec. 1.
This Act shall be known and may be cited as the "Uniform Management of Institutional Funds Act."
(Source: P. A. 78‑866.)
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(760 ILCS 50/2) (from Ch. 32, par. 1102)
Sec. 2.
As used in this Act unless the context otherwise requires, the terms
specified in Sections 2.01 through 2.06 have the meanings ascribed to them
in those Sections.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.01) (from Ch. 32, par. 1102.01)
Sec. 2.01.
"Endowment fund" means an institutional fund, or any part thereof, which
is not wholly expendable by the institution on a current basis under the
terms of the applicable gift instrument.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.02) (from Ch. 32, par. 1102.02)
Sec. 2.02.
"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.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.03) (from Ch. 32, par. 1102.03)
Sec. 2.03.
"Governing board" means the body responsible for the management of an
institution or of an institutional fund.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.04) (from Ch. 32, par. 1102.04)
Sec. 2.04.
"Historic dollar value" means the fair value in dollars of an endowment
fund at the time it first became an endowment fund, plus the fair value in
dollars of each subsequent donation to the fund at the time it is made,
plus the fair value in dollars of 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.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.05) (from Ch. 32, par. 1102.05)
Sec. 2.05.
"Institution" means an incorporated or 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.
(Source: P. A. 78‑866.)
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(760 ILCS 50/2.06) (from Ch. 32, par. 1102.06)
Sec. 2.06.
"Institutional fund" means a fund held by an institution for its
exclusive use, benefit or purposes, but does not include either a fund held
for an institution by a trustee which is not an institution or a fund in
which a beneficiary which is not an institution has an interest other than
possible rights which could arise upon violation or failure of the purposes
of the fund.
(Source: P. A. 78‑866.)
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(760 ILCS 50/3) (from Ch. 32, par. 1103)
Sec. 3.
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 7. 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
an institution.
(Source: P. A. 78‑866.)
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(760 ILCS 50/4) (from Ch. 32, par. 1104)
Sec. 4.
Section 3 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.
(Source: P. A. 78‑866.)
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(760 ILCS 50/5) (from Ch. 32, par. 1105)
Sec. 5.
In addition to an investment otherwise authorized by law or by the
applicable gift instrument, and without restriction to investments a
fiduciary is authorized to make, the governing board, subject to any
specific limitations set forth in the applicable gift instrument or in
applicable law other than law relating to investments a fiduciary is
authorized to make, may exercise the powers enumerated in Sections 5.01
through 5.04.
(Source: P. A. 78‑866.)
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(760 ILCS 50/5.01) (from Ch. 32, par. 1105.01)
Sec. 5.01.
The governing board may 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 and bonds,
debentures, and other securities of profit or non‑profit corporations,
shares in or obligations of associations, partnerships, or individuals, and
obligations of any government or sub‑division or instrumentality thereof.
(Source: P. A. 78‑866.)
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(760 ILCS 50/5.02) (from Ch. 32, par. 1105.02)
Sec. 5.02.
The governing board may retain property contributed by a donor to
an institutional fund for as long as the governing board deems advisable.
(Source: P.A. 78‑866.)
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(760 ILCS 50/5.03) (from Ch. 32, par. 1105.03)
Sec. 5.03.
The governing board may include all or any part of an institutional fund
in any pooled or common fund maintained by the institution.
(Source: P. A. 78‑866.)
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(760 ILCS 50/5.04) (from Ch. 32, par. 1105.04)
Sec. 5.04.
The governing board may 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 trusts, or
similar organizations in which funds are commingled and investment
determinations are made by persons other than the governing board.
(Source: P. A. 78‑866.)
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(760 ILCS 50/6) (from Ch. 32, par. 1106)
Sec. 6.
Except as otherwise provided by the applicable gift instrument or by
applicable law relating to governmental institutions or funds, the
governing board may exercise the powers enumerated in Sections 6.01 through
6.03.
(Source: P. A. 78‑866.)
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(760 ILCS 50/6.01) (from Ch. 32, par. 1106.01)
Sec. 6.01.
The governing board may delegate to its committees, to officers or
employees of the institution or the fund, or to agents, including
investment counsel, the authority to act in place of the board in
investment and reinvestment of institutional funds.
(Source: P. A. 78‑866.)
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(760 ILCS 50/6.02) (from Ch. 32, par. 1106.02)
Sec. 6.02.
The governing board may contract with independent investment advisors,
investment counsel or managers, banks, or trust companies.
(Source: P. A. 78‑866.)
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(760 ILCS 50/6.03) (from Ch. 32, par. 1106.03)
Sec. 6.03.
The governing board may authorize the payment of compensation for
investment advisory or management services.
(Source: P. A. 78‑866.)
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(760 ILCS 50/7) (from Ch. 32, par. 1107)
Sec. 7.
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, and 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.
(Source: P.A. 78‑866.)
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(760 ILCS 50/8) (from Ch. 32, par. 1108)
Sec. 8.
(a) A restriction on the use or investment of an institutional fund
imposed by the applicable gift instrument may be released, entirely or in
part, by the governing board with the written consent of the donor.
(b) A release under this Section may not allow a fund to be used for
purposes other than the educational, religious, charitable, or other
eleemosynary purposes of the institution affected.
(c) This Section does not limit the application of the doctrine of cy
pres.
(Source: P. A. 78‑866.)
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(760 ILCS 50/9) (from Ch. 32, par. 1109)
Sec. 9.
If any provision of this Act or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Act which can be given effect without
the invalid application or provision, and to this end the provisions of
this Act are declared to be severable.
(Source: P. A. 78‑866.)
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(760 ILCS 50/10) (from Ch. 32, par. 1110)
Sec. 10.
This Act shall be applied and construed to effectuate its general
purpose to make uniform the law with respect to the subject of this Act
among those states which enact it.
(Source: P. A. 78‑866.)
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