The UNC Policy Manual
600.2.1
Adopted 10/14/77
Amended 02/13/81
Amended 10/08/99
Amended 05/26/22
Technical Correction
06/02/22
I. Authority.
G.S. 116-36 provides the Board of Governors with authority to prescribe such
terms and conditions under which each of the board of trustees of each
constituent institution shall establish and maintain an endowment fund for the
constituent institution. Pursuant to and consistent with its authority under
the North Carolina General Statutes, including G.S. 116-36, the Board of
Governors adopts the following policy regarding the establishment and
maintenance of endowment funds.
II. Endowment
Property Exclusively for the Benefit of One Constituent Institution
A. Under the provisions of G.S. 116-36,
and pursuant to this policy, uniformly applicable to all constituent
institutions, the board of trustees of each constituent institution shall establish
and maintain an endowment fund for the constituent institution.
B. It is not the statutory intent
underlying this policy that the proceeds from any endowment fund shall take the
place of state appropriations or any part thereof, but it is the statutory
intent underlying this policy that those proceeds shall supplement the state
appropriations to the end that the constituent institution may improve and
increase its functions, may enlarge its area of service, and may become more
useful to a greater number of people.
C. Pursuant to this policy each board
of trustees shall appoint an investment board to be known as the “Board of
Trustees of the Endowment Fund of ___________________” (here shall be inserted
the name of the constituent institution).
D. The board of trustees of the
endowment fund shall consist of no fewer than six members and no more than nine
members, as determined by the board of trustees of the constituent institution. One member of the board of trustees of the
endowment fund shall be the chair of the board of trustees of the constituent
institution, one member shall be the chancellor of the constituent institution,
and a third ex officio member shall be designated by the board of trustees of
the constituent institution from among the officers of that board or of the
committees of that board. The remainder
of the members may be (but need not be) members of the board of trustees of the
constituent institution and shall be elected by the board of trustees of the
constituent institution for overlapping terms of three years each. The terms of the three elected members of the
board of trustees shall be initially for one, two, and three years each. All elections thereafter shall be for a
regular term of three years, except that any person elected by the board of
trustees to fill a vacancy created otherwise than by the expiration of a term
shall be elected to serve the remainder of the term of the person whom he or
she succeeds. The chair of the board of
trustees of the constituent institution shall be ex officio the chair of the board of trustees of the endowment fund
of that institution. The board of
trustees of the endowment fund may establish procedures, consistent with this
policy, for executing business and shall at least establish a quorum and a
necessary vote for the transaction of business and require the keeping of
minutes for meetings of the endowment board.
E. The trustees of the endowment fund
may receive and administer as part of the endowment fund gifts and devises and
any other property of any kind that may come to them from the Board of
Governors of the University of North Carolina or that may come to the trustees
of the endowment fund from any other source, excepting always the moneys
received from state appropriations and from tuition and fees collected from
students and used for the general operation of the institution.
F. Any gift or devise of real or
personal property to the constituent institution shall be presumed, nothing to
the contrary appearing, a gift or devise, as the case may be,
to the endowment fund of the constituent institution. This presumption shall not apply to property
made available to the institution prior to June 8, 1977.
G. Property shall not be deemed a part
of the corpus of the endowment fund until it has been presented by the
chancellor of the institution through written description of the property to
the trustees of the endowment fund and has been acknowledged in writing as
received by the trustees of the endowment fund.
Property expressly or presumptively made available to the constituent
institution for its endowment fund shall be presented by the chancellor to the
trustees of the endowment fund as provided in this paragraph unless the
chancellor finds that the property: (1) though presumptively made available to
the institution for its endowment fund, was in fact made available to the
institution for some other purpose; (2) has been made available to the
institution under conditions which make its acceptance or use illegal; or (3)
is unsuitable for use as property of the endowment fund.
H. The trustees of the endowment fund
shall be responsible for the prudent investment of the fund in the exercise of
their sound discretion, without regard to any statute or rule of law relating
to the investment of funds by fiduciaries but in compliance with any lawful
condition placed by the donor upon that part of the endowment fund to be
invested. Provided, however, that Chapter 36E of the North Carolina General
Statutes shall apply to the endowment fund.
I. The trustees of the endowment fund
shall have the power to buy, sell, lend, exchange, lease, transfer, or
otherwise dispose of or to acquire (except by pledging their credit or
violating a lawful condition of receipt of the corpus into the endowment fund)
any property, real or personal, with respect to the fund, in either public or
private transaction, and in doing so they shall not be subject to the
provisions of Chapters 143, 143C, and 146 of the General Statutes; provided
that, any expense or financial obligation of the State of North Carolina
created by any acquisition or disposition, by whatever means, of any real or
personal property of the endowment fund shall be borne by the endowment fund
unless authorization to satisfy the expense or financial obligation from some
other source shall first have been obtained from the Director of the Budget by
the board of trustees of the endowment fund through successive endorsements by
the Board of trustees of the institution and the Board of Governors; and provided further that, unless approved by the Board of Governors,
any acquisition, disposition, or capital project shall not materially alter the
value or functionality of any State property; and provided further that, any
gratuitous transfer of property or funds from the endowment fund shall be only
upon direction of the board of trustees of the institution upon recommendation
of the chancellor. Notwithstanding any other provision of this Policy, any real
property transaction or capital project that will require an increase of state
funds, tuition revenue, or student fees must be approved in advance by the
Board of Governors. Requests for Board of Governors’ approval shall be made in
a manner as prescribed by the president, or designee, and may include the
redaction of trade secret or other confidential or proprietary information not
considered a public record within the meaning of Chapter 132 of the General
Statutes and may be considered in closed session, as permitted by applicable
law.
J. The board of trustees of the
endowment fund may appoint a fiscal agent or agents having all the privileges,
powers, and immunities set forth in paragraph II.I., to the trustees of the
endowment fund except that no fiscal agent shall have authority to approach the
Director of the Budget as otherwise provided in paragraph II.I. The board of trustees of the endowment fund
may from time to time change its appointed fiscal agent or agents.
K. In the process of prudent investment
of the fund (including the acquisition and maintenance of property for the
fund) or to realize the intent underlying this policy, the board of trustees of
the endowment fund or a fiscal agent appointed pursuant to paragraph II.J. may
expend or use interest and principal of gifts and devises,; provided that, the
expense or use would not violate any condition or restriction imposed by the
original donor of the property which is to be expended or used nor violate the
provisions of paragraph II.I.
L. To
realize the statutory intent underlying this policy, the board of trustees of
the endowment fund may transfer interest or principal of the endowment fund to
the useful possession of the constituent institution; provided that, the
transfer would not violate any condition or restriction imposed by the original
donor of the property which is the subject of the proposed transfer; and
provided further that, such transfer be executed only by direction of the board
of trustees of the institution and for the purpose identified by the board of trustees
of the institution, upon recommendation of the chancellor.
M. Whenever any property of the endowment
fund is disposed of or otherwise transferred from the endowment fund to the
constituent institution or to any other recipient, any instrument of transfer
shall indicate that the donor, grantor, seller, lessor, lender, or transferor, as the case may be, is the board of trustees of the
endowment fund
N. The board of trustees of the
endowment fund shall annually submit a comprehensive report on the endowment
fund through the board of trustees of the institution to the Board of
Governors. The annual comprehensive report shall include
at least a consolidated financial statement, list of current real estate
holdings, and current funding commitment for capital projects.
O. The board of trustees of each
constituent institution shall within a reasonable time establish an endowment
fund as provided in this policy.
P. After a constituent institution has
established an endowment fund as provided in this policy, the board of trustees
of the institution shall direct that the chancellor inventory, consider, and
present for placement in the endowment fund, as provided in paragraph II.G.,
all property that reposes in any institutional endowment, trust, or account as
endowment property. The provisions of
this paragraph shall not apply to property reposing in any endowment, trust, or
foundation that has corporate identity other than under G.S. 116-3.
Q. When the trustees of the endowment
fund acknowledge in writing receipt of property pursuant to paragraph II.P .,
the provisions of the "Policy on Endowments" of April 11, 1974, of
the Board of Governors and any resolution of the Board of Governors made in
consequence of the "Policy on Endowments" shall be deemed inoperative
with respect to the pertinent constituent institution; provided that, the
transfer of title to any property by the Board of Governors to the endowment
fund of the constituent institution shall be deemed to have continued in
effect.
III. Endowment
Property for the Benefit of the University of North Carolina (UNC) as a Whole
or for the Benefit of Two or More Constituent Institutions
A. Under the provisions of G.S. 116-36,
and pursuant to this policy, uniformly applicable to all constituent
institutions, the UNC Board of Governors hereby establishes an endowment fund
for all endowment funds now held or hereafter acquired by the University of
North Carolina for
the benefit of the University as a whole, or for the joint benefit of any two
or more constituent institutions of the University.
B. It is not the statutory intent
underlying this policy that the proceeds from the endowment fund shall take the
place of state appropriations or any part thereof, but it is the statutory
intent underlying this policy that those proceeds shall supplement the state
appropriations to the end that UNC and its constituent institutions may improve
and increase their functions, may enlarge their areas of service, and may
become more useful to a greater number of people.
C. The
Committee on Budget and Finance of the UNC Board of Governors shall constitute
the board of trustees of all endowment funds now held or hereafter acquired by
the University of North Carolina for the benefit of the University System as a
whole or for the joint benefit of any two or more constituent institutions of
the University, to be known as the “Board of Trustees of the Endowment Fund of
the University of North Carolina." The chair of the Committee on Budget
and Finance shall be ex officio the chair
of the board of trustees of the endowment fund. Procedure for the conduct of
business by the board of trustees of the endowment fund shall be consistent
with Section 302C of The Code.
D. The trustees of the endowment fund
may receive and administer as part of the endowment fund gifts and devises, and
any other property of any kind that may come to them from the UNC Board of
Governors or that may come to the trustees of the endowment fund from any other
source, excepting always the moneys received from state appropriations and from
tuition and fees collected from students and used for the general operation of
the institution.
E. Any gift or devise of real or
personal property to the University of North Carolina System shall be presumed,
nothing to the contrary appearing, a gift or devise, as the
case may be to the endowment fund. This presumption shall not apply to
property made available to the University of North Carolina prior to June 8,
1977.
F. Any gift or devise of real or
personal property to the University of North Carolina for the benefit of the
University as a whole or for the joint benefit of any two or more constituent
institutions that reposes in any endowment, trust, or account as endowment
property shall be inventoried, considered, and presented by the president for
placement in the endowment fund as provided in paragraph II.H The provisions of this paragraph shall not
apply to property reposing in any endowment, trust, or foundation that has
corporate identity other than under G.S. 116-3.
G. Any gift or devise of real or
personal property jointly to two or more constituent institutions shall be
presented through written description of the property by the chancellors of the
beneficiary institutions to the president for his consideration and action as
provided in paragraph II.H. The
provisions of this paragraph shall not apply to property reposing in any
endowment, trust, or foundation that has corporate identity other than under
G.S. 116-3.
H. Property shall not be deemed a part
of the corpus of the endowment fund until it has been presented by the
president through written description of the property to the trustees of the
endowment fund and has been acknowledged in writing as received by the trustees
of the endowment fund. Property
expressly or presumptively made available to the endowment fund shall be
presented by the president to the trustees of the endowment fund as provided in
this paragraph unless the president finds that the property:
1. Though presumptively made available
to the University of North Carolina System for its endowment fund, was in fact
made available to the University for some other purpose;
2. Has been made available under
conditions which make its acceptance or use illegal; or
3. Is unsuitable for use as property of
the endowment fund.
I. The trustees of the endowment fund
shall be responsible for the prudent investment of the fund in the exercise of
their sound discretion, without regard to any statute or rule of law relating
to the investment of funds by fiduciaries but in compliance with any lawful
condition placed by the donor upon that part of the endowment fund to be
invested. Provided, however, that Chapter 36E of the North Carolina General
Statutes shall apply to the endowment fund.
J. The trustees of the endowment fund
shall have the power to buy, sell, lend, exchange, lease, transfer, or
otherwise dispose of or to acquire (except by pledging their credit or
violating a lawful condition of receipt of the corpus into the endowment fund)
any property, real or personal, with respect to the fund, in either public or
private transaction, and in doing so they shall not be subject to the
provisions of Chapters 143, 143C, and 146 of the General Statutes, provided
that, any expense or financial obligation of the State of North Carolina created
by any acquisition or disposition, by whatever means, of any real or personal
property of the endowment fund shall be borne by the endowment fund unless
authorization to satisfy the expense or financial obligation from some other
source shall first have been obtained from the Director of the Budget by the board
of trustees of the endowment fund upon the endorsement of the Board of
Governors; and provided further that, unless approved by
the Board of Governors, any acquisition, disposition, or capital project shall
not materially alter the value or functionality of any State property; and provided further
that, any gratuitous transfer of property or funds from the endowment fund
shall be only upon direction of the Board of Governors upon recommendation of
the president. Notwithstanding any other provision of this Policy, any real
property transaction or capital project that will require an increase of state
funds, tuition revenue, or student fees must be approved in advance by the
Board of Governors. Requests for Board of Governors’ approval shall be made in
a manner as prescribed by the president, or designee, and may include the
redaction of trade secret or other confidential or proprietary information not
considered a public record within the meaning of Chapter 132 of the General
Statutes and may be considered in closed session, as permitted by applicable
law.
K. The board of trustees of the endowment
fund may appoint a fiscal agent or agents having all the privileges, powers,
and immunities set forth in paragraph II.J. relative to the trustees of the
endowment fund except that no fiscal agent shall have authority to approach the
Director of the Budget otherwise provided in paragraph II.J. The board of trustees of the endowment fund
may from time to time change its appointed fiscal agent or agents.
L. In the process of prudent
investment of the fund (including the acquisition and maintenance of property
for the fund) or to realize the intent underlying this policy, the board of
trustees of the endowment fund or a fiscal agent appointed pursuant to
paragraph II.K. may expend or use interest and principal of gifts and devises;
provided that, the expense or use would not violate any condition or
restriction imposed by the original donor of the property which is to be
expended or used nor violate the provisions of paragraph II.J..
M. To realize the statutory intent
underlying this policy, the board of trustees of the endowment fund may
transfer interest or principal of the endowment fund to the useful possession
of the University of North Carolina or to constituent institutions provided
that, the transfer would not violate any condition or restriction imposed by
the original donor of the property which is the subject of the proposed
transfer, and provided further that, such transfer be executed only by
direction of the UNC Board of Governors of the and for the purpose identified by
the Board of Governors, upon recommendation of the president.
N. Whenever any property of the
endowment fund is disposed of or otherwise transferred from the endowment fund
to the University of North Carolina, to a constituent institution, or to any
other recipient, any instrument of transfer shall indicate that the donor,
grant or, seller, lessor, lender, or transferor, as the case
may be, is the board of trustees of the endowment fund.
O The trustees of the endowment fund
shall maintain discrete accounts for property received into the endowment fund
identified as to those institutions made beneficiaries of the respective
properties by their donors; and, upon distribution, the income and other
proceeds from the various properties shall be provided only to those
beneficiary institutions intended by the donor and in the proportion intended
by the donor.
P. The board of trustees of the
endowment fund shall annually submit a comprehensive report on the endowment
fund to the Board of Governors. The annual comprehensive report shall include
at least a consolidated financial statement, list of current real estate
holdings, and current funding commitment for capital projects.
Q. The president shall inventory,
consider, and present for placement in the endowment fund, as provided in
paragraph II.H., all property that presently reposes in any endowment, trust,
or account as endowment property for the benefit of the University of North
Carolina as a whole or for the benefit of two or more constituent institutions.
The provisions of this paragraph shall not apply to property reposing in any
endowment, trust, or foundation that has corporate identity other than under
G.S. 116-3.
R. When the trustees of the endowment
fund acknowledge in writing receipt of property pursuant to paragraph II.Q.,
the provisions of the "Policies on Endowments" of April 11, 1974, of
the Board of Governors concerning endowment funds for the benefit of the
University as a whole or for the joint benefit of any two or more constituent
institutions shall be deemed inoperative.
IV. Endowment
Property for the Benefit of The University of North Carolina Press
A. Under the provisions of G.S. 116-36,
and pursuant to this policy, uniformly applicable to all constituent
institutions, the UNC Board of Governors hereby establishes an endowment fund
for all endowment funds now held or hereafter acquired for the benefit of the
University of North Carolina Press.
B. It
is not the statutory intent underlying this policy that the proceeds from the
endowment fund shall take the place of state appropriations or any part
thereof, but it is the statutory intent underlying this policy that those
proceeds shall supplement the state appropriations to the end that the
University of North Carolina Press may improve and increase its functions, may
enlarge its areas of service, and may become more useful to a greater number of
people.
C. The Board of Governors of the
University of North Carolina Press shall constitute the board of trustees of
all endowment funds now held or hereafter acquired for the benefit of the
University of North Carolina Press, to be known as "the Board of Trustees
of the Endowment Fund of the University of North Carolina Press." The chair of the Board of Governors of the
University of North Carolina Press shall be ex
officio the chair of the board of trustees of the endowment fund. Procedures for the conduct of business by the
board of trustees of the endowment fund shall be consistent with procedures for
the conduct of business by the Board of Governors of the University of North
Carolina Press, Incorporated.
D. The trustees of the endowment fund
may receive and administer as part of the endowment fund gifts and devises and
any other property of any kind that may come to them from the UNC Board of
Governors or that may come to the trustees of the endowment fund from any other
source, excepting always the moneys received from state appropriations and from
tuition and fees collected from students and used for the general operation of
the University.
E. Any gift or devise of real or
personal property to the University of North Carolina Press shall be presumed,
nothing to the contrary appearing, a gift or devise, as the
case may be, to the endowment fund of the University of North Carolina
Press. This presumption shall not apply
to property made available to the University of North Carolina Press prior to
June 8, 1977.
F. Property shall not be deemed a part
of the corpus of the endowment fund until it has been presented by the
president of the UNC System through written description of the property to the
trustees of the endowment fund and has been acknowledged in writing as received
by the trustees of the endowment fund.
Property expressly or presumptively made available to the University of
North Carolina Press for its endowment fund shall be presented by the president
of the University of North Carolina to the trustees of the endowment fund as
provided in this paragraph unless the president, in consultation with the director
of the University of North Carolina Press, finds that the property: (1) though
presumptively made available to the University of North Carolina Press for its
endowment fund, was in fact made available to the Press for some other purpose;
(2) has been made available under conditions which make its acceptance or use
illegal; or (3) is unsuitable for use as property of the endowment fund.
G. The trustees of the endowment fund
shall be responsible for the prudent investment of the fund in the exercise of
their sound discretion, without regard to any statute or rule of law relating
to the investment of funds by fiduciaries but in compliance with any lawful condition
placed by the donor upon that part of the endowment fund to be invested.
Provided, however, that Chapter 36E of the North Carolina General Statutes
shall apply to the endowment fund.
H. The trustees of the endowment fund
shall have the power to buy, sell, lend, exchange, lease, transfer, or
otherwise dispose of or to acquire (except by pledging the credit of the State
of North Carolina or violating a lawful condition of receipt of the corpus into
the endowment fund) any property, real or personal, with respect to the fund,
in either public or private transaction, and in doing so they shall not be
subject to the provisions of Chapters 143, 143C, and 146 of the General
Statutes; provided that, any expense or financial obligation of the State of
North Carolina created by any acquisition or disposition, by whatever means, of
any real or personal property of the endowment fund shall be borne by the
endowment fund unless authorization to satisfy the expense or financial
obligation from some other source shall first have been obtained from the Director
of the Budget by the board of trustees of the endowment fund upon the
endorsement of the UNC Board of Governors; and provided
further that, unless approved by the Board of Governors, any acquisition,
disposition, or capital project shall not materially alter the value or
functionality of any State property; and provided further that, any gratuitous
transfer of property or funds from the endowment fund shall be only upon
direction of the Board of Governors of the University of North Carolina Press
upon recommendation of the president. Notwithstanding any other provision of
this Policy, any real property transaction or capital project will require an
increase of state funds, tuition revenue, or student fees must be approved in
advance by the Board of Governors. Requests for Board of Governors’ approval
shall be made in a manner as prescribed by the president, or designee, and may
include the redaction of trade secret or other confidential or proprietary
information not considered a public record within the meaning of Chapter 132 of
the General Statutes and may be considered in closed session, as permitted by
applicable law.
I. The board of trustees of the
endowment fund may appoint a fiscal agent or agents having all the privileges,
powers, and immunities set forth in paragraph III.H., relative to the trustees
of the endowment fund except that no fiscal agent shall have authority to
approach the Director of the Budget as otherwise provided in paragraph III.H. The board of trustees of the endowment fund
may from time to time change its appointed fiscal agent or agents.
J. In the process of prudent
investment of the fund (including the acquisition and maintenance of property
for the fund) or to realize the intent underlying this policy, the board of
trustees of the endowment fund or a fiscal agent appointed pursuant to
paragraph III.I., may expend or use interest and principal of gifts and devises;
provided that, the expense or use would not violate any condition or
restriction imposed by the original donor of the property which is to be
expended or used nor violate the provisions of paragraph III.H.
K. To realize the statutory intent
underlying these this policy, the board of trustees of the endowment fund may
transfer interest or principal of the endowment fund to the useful possession
of the University of North Carolina Press; provided that, the transfer would
not violate any condition or restriction imposed by the original donor of the
property which is the subject of the proposed transfer; and provided further
that, such transfer be executed only by direction of the Board of Governors of
the University of North Carolina Press and for the purpose identified by the
Board of Governors of the University of North Carolina Press, upon
recommendation of the president.
L. Whenever any property of the
endowment fund is disposed of or otherwise transferred from the endowment fund
to the University of North Carolina Press or to any other recipient, any
instrument of transfer shall indicate that the donor, grantor, seller, lessor,
lender, or transfer or, as the case may be, is the board
of trustees of the endowment fund.
M. The board of trustees of the endowment
fund shall annually submit a comprehensive report on the endowment fund to the UNC
Board of Governors, through the president. The annual comprehensive report
shall include at least a consolidated financial statement, list of current real
estate holdings, and current funding commitment for capital projects.
N. The
president shall inventory, consider, and present for placement in the endowment
fund, as provided in paragraph III.F., all property that presently reposes in
any endowment, trust, or account as endowment property for the benefit of the
University of North Carolina Press. The
provisions of this paragraph shall not apply to property reposing in any
endowment, trust, or foundation that has corporate identity other than under
G.S. 116-3 or the University of North Carolina Press, Incorporated.
O. When the trustees of the endowment
fund acknowledge in writing receipt of property pursuant to paragraph III.N.,
the provisions of the “Policies on Endowments” of April 11, 1974, of the Board
of Governors of the University of North Carolina concerning endowment funds for
the benefit of the University of North Carolina Press shall be deemed
inoperative.
P. When the trustees of the endowment
fund acknowledge in writing receipt of property pursuant to paragraph III.N.,
the resolution of May 10, 1974, of the Board of Governors of the University of
North Carolina concerning property held for the use and benefit of the
University of North Carolina Press shall be deemed inoperative; provided that,
the transfer of title to property under Section 1 of the resolution of May 10,
1974, to the Board of Governors of the University of North Carolina Press shall
be deemed to have continued in effect.
V. Endowment
Property for the Benefit of the University of North Carolina Center for Public
Media
A. Under the provisions of G.S. 116-36, and pursuant to this policy, uniformly applicable to all constituent institutions, the UNC Board of Governors hereby establishes an endowment fund for all endowment funds now held or hereafter acquired for the benefit of the University of North Carolina Center for Public Media.
B. It is not the statutory intent underlying this policy that the proceeds from the endowment fund shall take the place of state appropriations or any part thereof, but it is the statutory intent underlying this policy that those proceeds shall supplement the state appropriations to the end that the University of North Carolina Center for Public Media may improve and increase its functions, may enlarge its areas of service, and may become more useful to a greater number of people.
C. The Board of Trustees of the University of North Carolina Center for Public Media shall constitute the board of trustees of all endowment funds now held or hereafter acquired for the benefit of the University of North Carolina Center for Public Media, to be known as “the Board of Trustees of the Endowment Fund of the University of North Carolina Center for Public Media.” The chair of the Board of Trustees of the University of North Carolina Center for Public Media shall be ex officio the chairman of the board of trustees of the endowment fund. Procedures for the conduct of business by the board of trustees of the endowment fund shall be consistent with procedures for the conduct of business by the Board of Trustees of the University of North Carolina Center for Public Media.
D. The trustees of the endowment fund may receive and administer as part of the endowment fund gifts and devises and any other property of any kind that may come to them from the UNC Board of Governors or that may come to the trustees of the endowment fund from any other source, excepting always the moneys received from state appropriations and from tuition and fees collected from students and used for the general operation of the University.
E. Any gift or devise of real or personal property to the University of North Carolina Center for Public Media shall be presumed, nothing to the contrary appearing, a gift or devise, as the case may be, to the endowment fund of the University of North Carolina Center for Public Media. This presumption shall not apply to property made available to the University of North Carolina Center for Public Media or its functional predecessor prior to May 28, 1979.
F. Property shall not be deemed a part of the corpus of the endowment fund until it has been presented by the president through written description of the property to the trustees of the endowment fund and has been acknowledged in writing as received by the trustees of the endowment fund. Property expressly or presumptively made available to the University of North Carolina Center for Public Media for its endowment fund shall be presented by the president to the trustees of the endowment fund as provided in this paragraph unless the president, in consultation with the director of the University of North Carolina Center for Public Media finds that the property:
1. Though presumptively made available to the University of North Carolina Center for Public Media for its endowment fund, was in fact made available to the center for some other purpose;
2. Has been made available under conditions which make its acceptance or use illegal; or
3. Is unsuitable for use as property of the endowment fund.
G. The trustees of the endowment fund shall be responsible for the prudent investment of the fund in the exercise of their sound discretion, without regard to any statute or rule of law relating to the investment of funds by fiduciaries but in compliance with any lawful condition placed by the donor upon that part of the endowment fund to be invested. Provided, however, that Chapter 36E of the North Carolina General Statutes shall apply to the endowment fund.
H. The trustees of the endowment fund shall have the power to buy, sell, lend, exchange, lease, transfer, or otherwise dispose of or to acquire (except by pledging the credit of the State of North Carolina or violating a lawful condition of receipt of the corpus into the endowment fund) any property, real or personal, with respect to the fund, in either public or private transaction, and in doing so they shall not be subject to the provisions of Chapters 143, 143C, and 146 of the General Statutes; provided that, any expense or financial obligation of the State of North Carolina created by any acquisition or disposition, by whatever means, of any real or personal property of the endowment fund shall be borne by the endowment fund unless authorization to satisfy the expense or financial obligation from some other source shall first have been obtained from the Director of the Budget by the board of trustees of the endowment fund upon the endorsement of the UNC Board of Governors and provided further that, unless approved by the Board of Governors, any acquisition, disposition, or capital project shall not materially alter the value or functionality of any State property; and provided further that, any gratuitous transfer of property or funds from the endowment fund shall be only upon direction of the board of trustees of the University of North Carolina Center for Public Media upon recommendation of the president. Notwithstanding any other provision of this Policy, any real property transaction or capital project that will require an increase of state funds, tuition revenue, or student fees must be approved in advance by the Board of Governors. Requests for Board of Governors’ approval shall be made in a manner as prescribed by the president, or designee, and may include the redaction of trade secret or other confidential or proprietary information not considered a public record within the meaning of Chapter 132 of the General Statutes and may be considered in closed session, as permitted by applicable law.
I. The board of trustees of the endowment fund may appoint a fiscal agent or agents having all the privileges, powers, and immunities set forth in paragraph IV.H relative to the trustees of the endowment fund except that no fiscal agent shall have authority to approach the Director of the Budget as otherwise provided in paragraph IV.H. The board of trustees of the endowment fund may from time to time change its appointed fiscal agent or agents.
J. In the process of prudent investment of the fund (including the acquisition and maintenance of property for the fund) or to realize the intent under lying this policy, the board of trustees of the endowment fund or a fiscal agent appointed pursuant to paragraph IV.I may expend or use interest and principal of gifts and devises; provided that, the expense or use would not violate any condition or restriction imposed by the original donor of the property which is to be expended or used nor violate the provisions of paragraph IV.H.
K. To realize the statutory intent underlying this policy, the board of trustees of the endowment fund may transfer interest or principal of the endowment fund to the useful possession of the University of North Carolina Center for Public Media; provided that, the transfer would not violate any condition or restriction imposed by the original donor of the property which is the subject of the proposed transfer; and provided further that, such transfer be executed only by direction of the board of trustees of the University of North Carolina Center for Public Media and for the purpose identified by the board of trustees of the University of North Carolina Center for Public Media upon recommendation of the president.
L. Whenever any property of the endowment fund is disposed of or otherwise transferred from the endowment fund to the University of North Carolina Center for Public Media or to any other recipient, any instrument of transfer shall indicate that the donor, grantor, seller, lessor, lender, or transferor, as the case may be, is the board of trustees of the endowment fund.
M. The board of trustees of the endowment fund shall annually submit a comprehensive report on the endowment fund to the UNC Board of Governors, through the president. The annual comprehensive report shall include at least a consolidated financial statement, list of current real estate holdings, and current funding commitment for capital projects.
N. The president shall inventory, consider, and present for placement in the endowment fund, as provided in paragraph IV.F, all property that presently reposes in any endowment, trust, or account as endowment property for the benefit of the University of North Carolina Center for Public Media. The provisions of this paragraph shall not apply to property reposing in any endowment, trust, or foundation that has corporate identify other than under G.S. 116-3.
V. Other Matters
A. Effective
Date. The requirements of this policy shall be effective on the date of
adoption of this policy of the Board of Governors.
B. Relation
to State Laws. The foregoing policy as adopted by the Board of Governors is
meant to supplement and does not purport to supplant or modify, those statutory
enactments which may govern or related to the subject matter of this policy.
C. Regulations
and Guidelines. This policy shall be implemented and applied in accordance with
such regulations and guidelines as may be adopted from time to time by the
president.