(a) This section applies to all assets held by the corporation for investment. Assets which are directly related to the corporation's public or charitable programs
are not subject to this section.
(b) Except as provided in subdivision (c), in investing, reinvesting, purchasing,
acquiring, exchanging, selling and managing the corporation's investments, the board
shall do the following:
(1) Avoid speculation, looking instead to the permanent disposition of the funds,
considering the probable income, as well as the probable safety of the corporation's
(2) Comply with additional standards, if any, imposed by the articles, bylaws or express
terms of an instrument or agreement pursuant to which the assets were contributed
to the corporation.
(c) No investment violates this section where it conforms to provisions authorizing
the investment contained in an instrument or agreement pursuant to which the assets
were contributed to the corporation. No investment violates this section or Section 5231 where it conforms to provisions requiring the investment contained in an instrument
or agreement pursuant to which the assets were contributed to the corporation.
(e) Compliance with the Uniform Prudent Management of Institutional Funds Act (Part 7 (commencing with Section 18501) of Division 9 of the Probate Code), if that act would be applicable, will be deemed to be compliance with subdivision (b).
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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