2006 Code of Virginia § 23-76.1 - Investment of endowment funds, endowment income, and gifts; standard of care; liability; exemption ...

23-76.1. Investment of endowment funds, endowment income, and gifts;standard of care; liability; exemption from the Virginia Public ProcurementAct.

A. The board of visitors shall invest and manage the endowment funds,endowment income, and gifts of the University in accordance with this sectionand the provisions of the Uniform Management of Institutional Funds Act (55-268.1 et seq.).

B. No member of the board of visitors shall be personally liable for lossessuffered by an endowment fund, endowment income, or gifts arising frominvestments made pursuant to the provisions of subsection A.

C. The investment and management of endowment funds, endowment income, orgifts of the University shall not be subject to the provisions of theVirginia Public Procurement Act ( 2.2-4300 et seq.).

D. In addition to the investment practices authorized by the UniformManagement of Institutional Funds Act ( 55-268.1 et seq.), the board ofvisitors may also invest or reinvest the endowment funds, endowment income,and gifts in derivatives, options, and financial securities.

1. In this section, "derivative" means a contract or financial instrumentor a combination of contracts and financial instruments, including, withoutlimitation, any contract commonly known as a "swap," which gives theUniversity the right or obligation to deliver or receive delivery of, or makeor receive payments based on, changes in the price, value, yield or othercharacteristic of a tangible or intangible asset or group of assets, orchanges in a rate, an index of prices or rates, or other market indicator foran asset or a group of assets.

2. In this section, an "option" means an agreement or contract whereby theUniversity may grant or receive the right to purchase or sell, or pay orreceive the value of, any personal property asset including, withoutlimitation, any agreement or contract which relates to any security, contractor agreement.

3. In this section, "financial security" means any note, stock, treasurystock, bond, debenture, evidence of indebtedness, certificate of interest,collateral-trust certificate, preorganization certificate or subscription,transferable share, investment contract, voting-trust certificate,certificate of deposit for a security, fractional undivided interest in oil,gas, or other mineral rights, any put, call, straddle, option, or privilegeon any security, certificate of deposit, or group or index of securities(including any interest therein or based on the value thereof), or any put,call, straddle, option, or privilege entered into on a national securitiesexchange relating to foreign currency, or, in general, any interest orinstrument commonly known as a "security," or any certificate of interestor participation in, temporary or interim certificate for, receipt for,guarantee of, or warrant or right to subscribe to or purchase, any of theforegoing.

(1998, cc. 121, 132; 2000, cc. 818, 1014; 2002, cc. 582, 595.)