<HTML> <HEAD> <HTML> <HEAD> <meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT 55-14A UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title> <META NAME="Keywords" Content="South Dakota Codified Laws SDCL 55-14A UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT "> <META NAME="Description" Content="South Dakota Codified Laws 55-14A"> </HEAD> <BODY> <!-- File converted by Wp2Html Version 4.0 --> <!-- Email Andrew@brackenbeds.co.uk for more details --> <!-- WP Style Open: System_34 --><!-- WP Style End: System_34 --> <Div align="full"> <!-- WP Paired Style On: HG4 --><Div align="center"><!-- WP Style End: HG4 --> CHAPTER 55-14A <!-- WP Paired Style Off: HG4 --><!-- WP Style End: HG4 --> </Div> <br> <!-- WP Paired Style On: HG4C --><Div align="center"><!-- WP Style End: HG4C --> UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT <!-- WP Paired Style Off: HG4C --><!-- WP Style End: HG4C --> </Div> <br> <p> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-1">55-14A-1</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Short title. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-2">55-14A-2</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Definitions. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-3">55-14A-3</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Standard of conduct in managing and investing institutional fund. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-4">55-14A-4</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Appropriation for expenditure or accumulation of endowment fund--Rules of construction. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-5">55-14A-5</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Delegation of management and investment functions. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-6">55-14A-6</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Release or modification of restrictions on management, investment, or purpose. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-7">55-14A-7</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Reviewing compliance. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-8">55-14A-8</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Application to existing institutional funds. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-9">55-14A-9</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Relation to Electronic Signatures in Global and National Commerce Act. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-14A-10">55-14A-10</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Uniformity of application and construction. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <p> </BODY> </HTML> <br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072965Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072965SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072965CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072965Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072965DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072965000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072965SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072965SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072965Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-1"><span class="s2072965SENU">55-14A-1</span></a><span xml:space="preserve" class="s2072965SENU">. </span><span class="s2072965CL">Short title.</span></p><p dir="ltr" class="s2072965Normal-000000"><span class="s2072965DefaultParagraphFont">This chapter may be cited as the Uniform Prudent Management of Institutional Funds Act.</span></p><p dir="ltr" class="s2072965Normal"><span xml:space="preserve" class="s2072965000001"> </span></p><p dir="ltr" class="s2072965Normal"><span class="s2072965SCL">Source:</span><span xml:space="preserve" class="s2072965SCL-000002"> SL 2007, ch 283, § 1.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072966Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072966SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072966CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072966Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072966DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072966Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072966Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072966000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072966SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072966SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072966Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-2"><span class="s2072966SENU">55-14A-2</span></a><span xml:space="preserve" class="s2072966SENU">. </span><span class="s2072966CL">Definitions.</span></p><p dir="ltr" class="s2072966Normal-000000"><span class="s2072966DefaultParagraphFont">In this chapter:</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(1)    "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose the achievement of which is beneficial to the community.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(2)    "Endowment fund" means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The term does not include assets that an institution designates as an endowment fund for its own use.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(3)    "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(4)    "Institution" means:</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(A)    A person, other than an individual, organized and operated exclusively for charitable purposes;</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(B)    A government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; and</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(C)    A trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(5)    "Institutional fund" means a fund held by an institution exclusively for charitable purposes. The term does not include:</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(A)    Program-related assets;</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(B)    A fund held for an institution by a trustee that is not an institution; or</span></p><p dir="ltr" class="s2072966Normal-000002"><span class="s2072966DefaultParagraphFont">(C)    A fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(6)    "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(7)    "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.</span></p><p dir="ltr" class="s2072966Normal-000001"><span class="s2072966DefaultParagraphFont">(8)    "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.</span></p><p dir="ltr" class="s2072966Normal"><span xml:space="preserve" class="s2072966000003"> </span></p><p dir="ltr" class="s2072966Normal"><span class="s2072966SCL">Source:</span><span xml:space="preserve" class="s2072966SCL-000004"> SL 2007, ch 283, § 2.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072967Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072967SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072967CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072967Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072967DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072967Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2072967Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072967Normal-000003 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072967000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072967SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072967SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072967Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-3"><span class="s2072967SENU">55-14A-3</span></a><span xml:space="preserve" class="s2072967SENU">. </span><span class="s2072967CL">Standard of conduct in managing and investing institutional fund.</span></p><p dir="ltr" class="s2072967Normal-000000"><span class="s2072967DefaultParagraphFont">(a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.</span></p><p dir="ltr" class="s2072967Normal-000001"><span class="s2072967DefaultParagraphFont">(b) In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.</span></p><p dir="ltr" class="s2072967Normal-000001"><span class="s2072967DefaultParagraphFont">(c) In managing and investing an institutional fund, an institution:</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(1)    May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(2)    Shall make a reasonable effort to verify facts relevant to the management and investment of the fund.</span></p><p dir="ltr" class="s2072967Normal-000001"><span class="s2072967DefaultParagraphFont">(d) An institution may pool two or more institutional funds for purposes of management and investment.</span></p><p dir="ltr" class="s2072967Normal-000001"><span class="s2072967DefaultParagraphFont">(e) Except as otherwise provided by a gift instrument, the following rules apply:</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(1)    In managing and investing an institutional fund, the following factors, if relevant, must be considered:</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(A)    General economic conditions;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(B)    The possible effect of inflation or deflation;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(C)    The expected tax consequences, if any, of investment decisions or strategies;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(D)    The role that each investment or course of action plays within the overall investment portfolio of the fund;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(E)    The expected total return from income and the appreciation of investments;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(F)    Other resources of the institution;</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(G)    The needs of the institution and the fund to make distributions and to preserve capital; and</span></p><p dir="ltr" class="s2072967Normal-000003"><span class="s2072967DefaultParagraphFont">(H)    An asset's special relationship or special value, if any, to the charitable purposes of the institution.</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(2)    Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(3)    Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(4)    An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(5)    Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.</span></p><p dir="ltr" class="s2072967Normal-000002"><span class="s2072967DefaultParagraphFont">(6)    A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.</span></p><p dir="ltr" class="s2072967Normal"><span xml:space="preserve" class="s2072967000004"> </span></p><p dir="ltr" class="s2072967Normal"><span class="s2072967SCL">Source:</span><span xml:space="preserve" class="s2072967SCL-000005"> SL 2007, ch 283, § 3.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072968Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072968SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072968CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072968Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072968DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072968Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072968Normal-000002 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072968000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072968SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072968SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072968Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-4"><span class="s2072968SENU">55-14A-4</span></a><span xml:space="preserve" class="s2072968SENU">. </span><span class="s2072968CL">Appropriation for expenditure or accumulation of endowment fund--Rules of construction.</span></p><p dir="ltr" class="s2072968Normal-000000"><span class="s2072968DefaultParagraphFont">(a) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(1)    The duration and preservation of the endowment fund;</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(2)    The purposes of the institution and the endowment fund;</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(3)    General economic conditions;</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(4)    The possible effect of inflation or deflation;</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(5)    The expected total return from income and the appreciation of investments;</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(6)    Other resources of the institution; and</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(7)    The investment policy of the institution.</span></p><p dir="ltr" class="s2072968Normal-000002"><span class="s2072968DefaultParagraphFont">(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation.</span></p><p dir="ltr" class="s2072968Normal-000002"><span class="s2072968DefaultParagraphFont">(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", or "rents, issues, or profits", or "to preserve the principal intact", or words of similar import:</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(1)    Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and</span></p><p dir="ltr" class="s2072968Normal-000001"><span class="s2072968DefaultParagraphFont">(2)    Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a).</span></p><p dir="ltr" class="s2072968Normal"><span xml:space="preserve" class="s2072968000003"> </span></p><p dir="ltr" class="s2072968Normal"><span class="s2072968SCL">Source:</span><span xml:space="preserve" class="s2072968SCL-000004"> SL 2007, ch 283, § 4.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072969Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072969SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072969CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072969Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072969DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072969Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2072969Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072969000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072969SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072969SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072969Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-5"><span class="s2072969SENU">55-14A-5</span></a><span xml:space="preserve" class="s2072969SENU">. </span><span class="s2072969CL">Delegation of management and investment functions.</span></p><p dir="ltr" class="s2072969Normal-000000"><span class="s2072969DefaultParagraphFont">(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:</span></p><p dir="ltr" class="s2072969Normal-000001"><span class="s2072969DefaultParagraphFont">(1)    Selecting an agent;</span></p><p dir="ltr" class="s2072969Normal-000001"><span class="s2072969DefaultParagraphFont">(2)    Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and</span></p><p dir="ltr" class="s2072969Normal-000001"><span class="s2072969DefaultParagraphFont">(3)    Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.</span></p><p dir="ltr" class="s2072969Normal-000002"><span class="s2072969DefaultParagraphFont">(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.</span></p><p dir="ltr" class="s2072969Normal-000002"><span class="s2072969DefaultParagraphFont">(c) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.</span></p><p dir="ltr" class="s2072969Normal-000002"><span class="s2072969DefaultParagraphFont">(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.</span></p><p dir="ltr" class="s2072969Normal-000002"><span class="s2072969DefaultParagraphFont">(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.</span></p><p dir="ltr" class="s2072969Normal"><span xml:space="preserve" class="s2072969000003"> </span></p><p dir="ltr" class="s2072969Normal"><span class="s2072969SCL">Source:</span><span xml:space="preserve" class="s2072969SCL-000004"> SL 2007, ch 283, § 5.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072970Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072970SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072970CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072970Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072970DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072970Normal-000001 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } p.s2072970Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072970000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072970SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072970SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072970Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-6"><span class="s2072970SENU">55-14A-6</span></a><span xml:space="preserve" class="s2072970SENU">. </span><span class="s2072970CL">Release or modification of restrictions on management, investment, or purpose.</span></p><p dir="ltr" class="s2072970Normal-000000"><span class="s2072970DefaultParagraphFont">(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.</span></p><p dir="ltr" class="s2072970Normal-000001"><span class="s2072970DefaultParagraphFont">(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. To the extent practicable, any modification must be made in accordance with the donor's probable intention.</span></p><p dir="ltr" class="s2072970Normal-000001"><span class="s2072970DefaultParagraphFont">(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument.</span></p><p dir="ltr" class="s2072970Normal-000001"><span class="s2072970DefaultParagraphFont">(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution may release or modify the restriction, in whole or part, if:</span></p><p dir="ltr" class="s2072970Normal-000002"><span class="s2072970DefaultParagraphFont">(1)    The institutional fund subject to the restriction has a total value of less than twenty-five thousand dollars;</span></p><p dir="ltr" class="s2072970Normal-000002"><span class="s2072970DefaultParagraphFont">(2)    More than twenty years have elapsed since the fund was established; and</span></p><p dir="ltr" class="s2072970Normal-000002"><span class="s2072970DefaultParagraphFont">(3)    The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.</span></p><p dir="ltr" class="s2072970Normal"><span xml:space="preserve" class="s2072970000003"> </span></p><p dir="ltr" class="s2072970Normal"><span class="s2072970SCL">Source:</span><span xml:space="preserve" class="s2072970SCL-000004"> SL 2007, ch 283, § 6.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072971Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072971SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072971CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072971Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072971DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072971000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072971SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072971SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072971Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-7"><span class="s2072971SENU">55-14A-7</span></a><span xml:space="preserve" class="s2072971SENU">. </span><span class="s2072971CL">Reviewing compliance.</span></p><p dir="ltr" class="s2072971Normal-000000"><span class="s2072971DefaultParagraphFont">Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.</span></p><p dir="ltr" class="s2072971Normal"><span xml:space="preserve" class="s2072971000001"> </span></p><p dir="ltr" class="s2072971Normal"><span class="s2072971SCL">Source:</span><span xml:space="preserve" class="s2072971SCL-000002"> SL 2007, ch 283, § 7.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072972Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072972SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072972CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072972Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072972DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072972000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072972SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072972SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072972Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-8"><span class="s2072972SENU">55-14A-8</span></a><span xml:space="preserve" class="s2072972SENU">. </span><span class="s2072972CL">Application to existing institutional funds.</span></p><p dir="ltr" class="s2072972Normal-000000"><span class="s2072972DefaultParagraphFont">This chapter applies to institutional funds existing on or established after July 1, 2007. As applied to institutional funds existing on July 1, 2007, this chapter governs only decisions made or actions taken on or after that date. This chapter does not apply to any funds directly held or managed by a governmental agency.</span></p><p dir="ltr" class="s2072972Normal"><span xml:space="preserve" class="s2072972000001"> </span></p><p dir="ltr" class="s2072972Normal"><span class="s2072972SCL">Source:</span><span xml:space="preserve" class="s2072972SCL-000002"> SL 2007, ch 283, § 8.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072973Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072973SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072973CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072973Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072973DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072973000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072973SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072973SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072973Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-9"><span class="s2072973SENU">55-14A-9</span></a><span xml:space="preserve" class="s2072973SENU">. </span><span class="s2072973CL">Relation to Electronic Signatures in Global and National Commerce Act.</span></p><p dir="ltr" class="s2072973Normal-000000"><span class="s2072973DefaultParagraphFont">This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101 of that act, 15 U. S.C. Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of that act, 15 U.S.C. Section 7003(b).</span></p><p dir="ltr" class="s2072973Normal"><span xml:space="preserve" class="s2072973000001"> </span></p><p dir="ltr" class="s2072973Normal"><span class="s2072973SCL">Source:</span><span xml:space="preserve" class="s2072973SCL-000002"> SL 2007, ch 283, § 9.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-14A - UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072974Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072974SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072974CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072974Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072974DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072974000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072974SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072974SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2072974Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-14A-10"><span class="s2072974SENU">55-14A-10</span></a><span xml:space="preserve" class="s2072974SENU">. </span><span class="s2072974CL">Uniformity of application and construction.</span></p><p dir="ltr" class="s2072974Normal-000000"><span class="s2072974DefaultParagraphFont">In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.</span></p><p dir="ltr" class="s2072974Normal"><span xml:space="preserve" class="s2072974000001"> </span></p><p dir="ltr" class="s2072974Normal"><span class="s2072974SCL">Source:</span><span xml:space="preserve" class="s2072974SCL-000002"> SL 2007, ch 283, § 10.</span></p></div></body></html>