32.1-361.1 - Virginia Foundation for Healthy Youth Endowment.
§ 32.1-361.1. Virginia Foundation for Healthy Youth Endowment.
A. There is hereby established in the state treasury a special fund to bedesignated the "Virginia Foundation for Healthy Youth Endowment" (theEndowment). The Endowment shall receive any proceeds from any sale of all orany portion of the Foundation Allocation, deposits from the Fund asdetermined by the Board pursuant to subdivision 5 of § 32.1-356, and anygifts, grants, and contributions that are specifically designated forinclusion in such Endowment. No part of the Endowment, neither corpus norincome, or interest thereon, shall revert to the general fund of the statetreasury. The Endowment shall be under the management and control of theTreasury Board and the Treasury Board shall have such powers and authority asmay be necessary to exercise such management and control consistent with theprovisions of this section. The income of the Endowment shall be paid out,not less than annually, to the Fund. In addition, up to 10 percent of thecorpus of the Endowment shall be paid to the Fund annually upon request ofthe Board to the Treasury Board; provided, however, that upon two-thirds voteof the Board, up to 15 percent of the corpus of the Endowment shall be sopaid. No use of proceeds shall be made that would cause bonds issued on atax-exempt basis to be considered taxable. For purposes of this section,"income" of the Endowment means at the time of determination the lesser ofthe available cash in, or the realized investment income for the applicableperiod of the Endowment, and "corpus" of the endowment means at the time ofdetermination the sum of the proceeds from the sale of all or any portion ofthe Foundation Allocation, deposits from the Fund as determined by the Boardpursuant to subdivision 5 of § 32.1-356, any gifts, grants, and contributionsthat have been credited to such Endowment, and any income not appropriatedand withdrawn from the Endowment before June 30 of each year, lesswithdrawals from the corpus. Determinations by the Treasury Board, or theState Treasurer on behalf of the Treasury Board, as to the amount of incomeor the amount of the corpus shall be conclusive.
B. The Treasury Board shall serve as trustee of the Endowment and the corpusand income of the Endowment shall be withdrawn and credited to the Fund byorder of the Treasury Board as provided in subsection A. The State Treasurershall be custodian of the funds credited to the Endowment. The Treasury Boardshall have full power to invest and reinvest funds credited to the Endowmentin accordance with the provisions of the Uniform Prudent Management ofInstitutional Funds Act (§ 55-268.11 et seq.) and, in addition, as otherwiseprovided by law. The Treasury Board may borrow money in such amounts as maybe necessary whenever in its judgment it would be more advantageous to borrowmoney than to sell securities held for the Fund. Any debt so incurred may beevidenced by notes duly authorized by resolution of the Treasury Board, suchnotes to be retired no later than the end of the biennium in which such debtis incurred. The Treasury Board may commingle, for purposes of investment,the corpus of the Endowment provided that it shall appropriately account forthe investments credited to the Endowment. The Treasury Board may hireindependent investment advisors and managers as it deems appropriate toassist with investing the Endowment. The expenses of making and disposing ofinvestments, such as brokerage commissions, legal expenses related to aparticular transaction, investment advisory and management fees and expenses,transfer taxes and other customary transactional expenses shall be payableout of the income of the Endowment.
C. Not less than annually and more frequently if desired by the Board orrequested by the Treasury Board, the Board shall provide to the TreasuryBoard schedules of anticipated disbursements from the Fund for the currentand succeeding fiscal year, and the Treasury Board shall, to the extentpracticable, take into account such schedules and changes thereto inscheduling maturities and redemptions of its investments of the Endowment.
(2007, c. 345; 2008, c. 184; 2009, cc. 424, 554.)