 | Board of Visitors minutes July 28, 2006 |  |
APPROVAL OF LEGISLATIVE PROPOSAL - INVESTMENT OF
PUBLIC
FUNDS
RESOLVED, the Board of Visitors of the University of Virginia approves and endorses the proposed legislation to add other University funds to those funds that may be invested by the Board of Visitors in financial securities other than fixed-income securities.
The proposed legislation, which follows, would make exempt from §2.2-4500 - 2.2-4517 the following:
§23-76.1. Investment of endowment funds, endowment income, and gifts; standard of care; liability; exemption from the Virginia Public Procurement Act.
A. The board of visitors shall invest and manage the endowment funds, endowment income, gifts, all non-general fund reserves held by the University, all local funds, tuition, education and general fees, or research and sponsored program funds of the University in accordance with this section and 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 losses suffered by an endowment funds, endowment income, gifts, all non-general fund reserves held by the University, all local funds, tuition, education and general fees, or research and sponsored program funds arising from investments made pursuant to the provisions of subsection A.
C. The investment and management of endowment funds, endowment income, gifts, all non-general fund reserves held by the University, all local funds, tuition, education and general fees, or research and sponsored program funds of the University shall not be subject to the provisions of the Virginia Public Procurement Act (§2.2-4300 et seq.).
D. In addition to the investment practices authorized by the Uniform Management of Institutional Funds Act (§55- 268.1 et seq.), the board of visitors may also invest or reinvest the endowment funds, endowment income, gifts, all non-general fund reserves held by the University, all local funds, tuition, education and general fees, or research and sponsored program funds in derivatives, options, and financial securities.
1. In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments, including, without limitation, any contract commonly known as a "swap," which gives the University the right or obligation to deliver or receive delivery of, or make or receive payments based on, changes in the price, value, yield or other characteristic of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
2. In this section, an "option" means an agreement or contract whereby the University may grant or receive the right to purchase or sell, or pay or receive the value of, any personal property asset including, without limitation, any agreement or contract which relates to any security, contract or agreement.
3. In this section, "financial security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest, collateral-trust certificate, pre-organization 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 privilege on 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 securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.
The third proposal was a resolution, to be sent to Richmond, supporting a legislative study of the serious shortage of health care practitioners.
The Board, on motion, approved the following resolution:
| Board of Visitors minutes July 28, 2006 | |