2005 North Carolina Code - General Statutes § 116-238. Endowment fund.

§ 116‑238.  Endowment fund.

(a)       The Board of Trustees of the School may establish and maintain, consistent with this section, an endowment fund for the School.

(b)       It is not the intent of this section that the proceeds from any endowment fund shall take the place of State appropriations or any part thereof, but it is the intent of this section that those proceeds shall supplement the State appropriations to the end that the School may improve and increase its functions, may enlarge its areas of service, and may become more useful to a greater number of people.

(c)       Pursuant to the foregoing subsections and consistent with the powers and duties prescribed in this section, the Board of Trustees of the School shall appoint an investment board to be known as "The Board of Trustees of the Endowment Fund of the North Carolina School of Science and Mathematics."

(d)       The trustees of the endowment fund may receive and administer as part of the endowment fund gifts, devises, and bequests and any other property of any kind that may come to them from the Board of Governors of The University of North Carolina or that may come to the trustees of the endowment fund from any other source, excepting always the moneys received from State appropriations and from tuition and fees, if any, collected from students and used for the general operation of the institution.

(e)       The trustees of the endowment fund shall be responsible for the prudent investment of the fund in the exercise of their sound discretion, without regard to any statute or rule of law relating to the investment of funds by fiduciaries but in compliance with any lawful condition placed by the donor upon that part of the endowment fund to be invested.

(f)        In the process of prudent investment of the fund or to realize the statutory intent of the endowment, the Board of Trustees of the endowment fund may expend or use interest and principal of gifts, devises, and bequests; provided that, the expense or use would not violate any condition or restriction imposed by the original donor of the property which is to be expended or used. To realize the statutory intent of the endowment fund, the Board of Trustees of the endowment fund may transfer interest or principal of the endowment fund to the useful possession of the School; provided that, the transfer would not violate any condition or restriction imposed by the original donor of the property which is the subject of the proposed transfer.

(g)       The trustees of the endowment fund shall have the power to buy, sell, lend, exchange, lease, transfer, or otherwise dispose of or to acquire (except by pledging their credit or violating a lawful condition of receipt of the corpus into the endowment fund) any property, real or personal, with respect to the fund, in either public or private transaction, and in doing so they shall not be subject to the provisions of Chapters 143 and 146 of the General Statutes; provided that, any expense or financial obligation of the State of North Carolina created by any acquisition or disposition, by whatever means, of any real or personal property of the endowment fund shall be borne by the endowment fund unless authorization to satisfy the expense or financial obligation from some other source shall first have been obtained from the Director of the Budget after the Director of the Budget consults with the Advisory Budget Commission.

(h), (i)  Reserved for future codification purposes.

(j)        Any gift, devise, or bequest of real or personal property to the North Carolina School of Science and Mathematics shall be presumed, nothing to the contrary appearing, a gift, devise, or bequest, as the case may be, to the endowment fund of the School.

(k)       Whenever any property of the endowment fund authorized by this section is disposed of or otherwise transferred from the endowment fund, any instrument of transfer shall indicate that the donor, grantor, seller, lessor, lender, or transferor, as the case may be, is the Board of Trustees of the endowment fund.

(l)        All instruments for execution of the duly authorized business of the endowment fund, including deeds of conveyance and other documents of title to real property, are hereby authorized to be executed in the name of the endowment board by the principal officer of the Board of Trustees of the endowment fund or such other person or agent as the board may expressly appoint in a manner consistent with the requirements of law. (1985, c. 757, s. 206(b).)