2006 Utah Code - 13-29-4 — Rule of construction.

     13-29-4.   Rule of construction.
     (1) Section 13-29-3 does not apply if the applicable gift instrument indicates the donor's intention that net appreciation may not be expended.
     (2) 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 meaning.
     (3) This rule of construction applies to gift instruments executed or in effect after May 5, 1997.
     (4) Nothing in Section 13-29-3 or this section may be construed to require any institution or governing board to treat net appreciation, realized or unrealized, in the fair value of the assets of an endowment fund over the historic dollar value of the fund as income or revenue from operations for the purpose of ascertaining net financial results from operation or as unrestricted assets.

Enacted by Chapter 242, 1997 General Session