2005 Missouri Revised Statutes - § 402.035. — Standard of conduct.

402.035. Except as otherwise set forth in the gift instrument, when investing, reinvesting, purchasing, acquiring, exchanging, selling, managing property, appropriating appreciation, developing and applying investment and spending policies, accumulating income, and delegating investment management for the benefit of an institution, the members of the governing board shall act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with these matters would use in the conduct of an enterprise of like character and with like aims to accomplish the purposes of the institution receiving the benefit of the institutional endowment fund. In the course of administering the fund pursuant to this standard, individual investments shall be considered as part of an overall investment strategy. In exercising judgment pursuant to this section, the governing board shall consider long and short term needs of the institution or the institution which is the beneficiary 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.

(L. 1976 H.B. 1096 � 6, A.L. 1995 S.B. 178)