§ 116-36. Endowment fund. - North Carolina Statutes

§ 116‑36.  Endowmentfund.

(a)        The board oftrustees of each constituent institution shall establish and maintain, pursuantto such terms and conditions, uniformly applicable to all constituentinstitutions, as the Board of Governors of the University of North Carolina mayfrom time to time prescribe, an endowment fund for the constituent institution.

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

(c)        Pursuant to theforegoing subsections and consistent with the powers and duties prescribed inthis section, each board of trustees shall appoint an investment board to beknown as "The Board of Trustees of the Endowment Fund of ______"(here shall be inserted the name of the constituent institution).

(d)        The trustees of theendowment 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 themfrom the Board of Governors of the University of North Carolina or that maycome to the trustees of the endowment fund from any other source, exceptingalways the moneys received from State appropriations and from tuition and feescollected from students and used for the general operation of the institution.

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

(f)         In the process ofprudent investment of the fund or to realize the statutory intent of theendowment, the board of trustees of the endowment fund may expend or useinterest and principal of gifts, devises, and bequests; provided that, theexpense or use would not violate any condition or restriction imposed by theoriginal donor of the property which is to be expended or used. To realize thestatutory intent of the endowment fund, the board of trustees of the endowmentfund may transfer interest or principal of the endowment fund to the usefulpossession of the constituent institution; provided that, the transfer wouldnot violate any condition or restriction imposed by the original donor of theproperty which is the subject of the proposed transfer.

(g)        The trustees of theendowment fund shall have the power to buy, sell, lend, exchange, lease,transfer, or otherwise dispose of or to acquire (except by pledging theircredit or violating a lawful condition of receipt of the corpus into theendowment fund) any property, real or personal, with respect to the fund, ineither public or private transaction, and in doing so they shall not be subjectto the provisions of Chapters 143, 143C, and 146 of the General Statutes;provided that, any expense or financial obligation of the State of NorthCarolina created by any acquisition or disposition, by whatever means, of anyreal or personal property of the endowment fund shall be borne by the endowmentfund unless authorization to satisfy the expense or financial obligation fromsome other source shall first have been obtained from the Director of theBudget.

(h)        The Board ofGovernors of the University of North Carolina shall establish and maintain in amanner not inconsistent with the provisions of this section or with regulationsestablished under this section an endowment fund for all endowment funds nowheld or hereafter acquired by the University of North Carolina for the benefitof the University as a whole, or for the joint benefit of any two or moreconstituent institutions of the University.

(i)         The Board ofGovernors of the University of North Carolina shall establish and maintain in amanner not inconsistent with the provisions of this section or with regulationsestablished under this section an endowment fund for all endowment funds nowheld or hereafter acquired for the benefit of the University of North CarolinaPress.

(i1)       The Board ofGovernors of the University of North Carolina shall establish and maintain in amanner not inconsistent with the provisions of this section or with regulationsestablished under this section an endowment fund for all endowment funds nowheld or hereafter acquired for the benefit of the University of North CarolinaCenter for Public Television.

(j)         Any gift, devise,or bequest of real or personal property to a constituent institution of theUniversity of North Carolina or to the University of North Carolina or to theUniversity of North Carolina Press or to the University of North CarolinaCenter for Public Television shall be presumed, nothing to the contraryappearing, a gift, devise, or bequest, as the case may be, to the endowmentfund of the respective institution or agency.

(k)        Whenever anyproperty of an endowment fund authorized by this section is disposed of orotherwise transferred from the endowment fund, any instrument of transfer shallindicate that the donor, grantor, seller, lessor, lender, or transferor, as thecase may be, is the board of trustees of the endowment fund.

(l)         The proceeds andfunds described by this section are appropriated and may be used only asprovided by this section.

(m)       Chapter 36E of theGeneral Statutes applies to an endowment fund authorized by this section.  (1971, c. 1244, s. 1; 1977,c. 506; 1979, c. 649, ss. 2, 3; 1983, c. 717, s. 31; 1985 (Reg. Sess., 1986),c. 955, ss. 28, 29; 2006‑203, ss. 44, 44.1; 2009‑8, s. 5.)