An Act To Enact the Uniform Prudent Management of Institutional Funds Act
Maine Legislature, Session 124, LD 1402
Committee Amendment CA_A-HA_A_H559 (House)

HOUSE AMENDMENT "f!" to COMMITTEE AMENDMENT "A" to I-I.P. 981, 
L.D. 1402, Bill, "An Act To Enact the Uniform Prudent Management of Institutional 
Funds Act" 
Amend the amendment by striking out all of the first indented paragraph and all of 
paragraph G (page I, lines II to 19 in amendment) and inseliing the following: 
'Amend the bill in section 2 in §51 02 by inseliing after subsection 3 the following: 
'4. Historic dollar value. 
"Historic dollar value" means the aggregate value in 
dollars of: 
A. Each endowment fund at the time it became an endowment fund; 
B. Each subsequent donation to the fund at the time the donation is made; and 
C. Each accumulation made pursuant to a direction in the applicable gift instrument 
at the time the accumulation is added to the fund. 
An institution's determination of historic dollar value made in good faith is conclusive. ' , 
Amend the amendment in section 2 in §5102 by relettering or renumbering the 
subsections numbers to read consecutively. 
Amend the amendment by striking out all of subsection 4 (page I, lines 21 to 29 in 
amendment) and inseliing the following: 
'4. Track historic dollar value. An institution shall track the historic dollar value of 
its institutional funds. 
5. 
Aggregate value of $2,000,000 or "more. 
An institution administering 
endowment funds with an aggregate value of $2,000,000 or more shall notify the 
Attorney General upon its adoption of the provisions of this Act. 
6. 
Aggregate value of less than $2,000,000. 
An, institution administering 
endowment funds with an aggregate value of less than $2,000,000 shall notify the 
Attorney General at least 60 days prior to an appropriation for expend iture of an amount 
that would cause the value of the institution's endowment funds to fall below the 
aggregate historic dollar value of the institution's endowment funds. 
During the 60-day 
Page I - 124LR09SI(06)-1 
HOUSE AMENDMENT 
~.~~' 
HOUSE AMENOMENT'"/r. to COMM [ITEE AM EN OM ENT "A" [0 BY. 981. L.O. 1402 
period, the Attorney General may require the institution to obtain COllli approval for the 
proposed expenditure. 
7. Rebuttable presumption. The appropriation for expenditure in any year of an 
amount greater than 7% of the fair market value of an endowment fund, calculated on the. 
basis of market values determined at least quarterly and averaged over a period of not less 
than 3 years immediately preceding the year in which the appropriation for expenditure is 
made, creates a rebuttable presumption of imprudence. 
For an endowment fund in 
existence for less than 3 years, the fair market value of the endowment fund must be' 
calculated for the period the endowment fund has been in existence. This subsection does' 
not apply to an appropriation for expenditure permitted under law other than this chapter 
or by the gift instrument.' 
SUMMARY 
This amendment moves the definition of "historic dollar value" to the general 
definitions section and provides that an institution's determination of historic dollar value 
made in good faith is conclusive. This amendment also: 
1. Requires that an institution administering endowment funds with an aggregate 
value of $2,000,000 or more shall notify the Attorney General upon its adoption of the 
provisions of the Uniform Prudent Management of Institutional Funds Act; and 
2. Requires that an institution administering endowment funds with an aggregate 
value of less than $2,000,000 shall notify the Attorney General at least 60 days prior to an 
appropriation for expenditure of an amount that would cause the value of the institution's 
endowment funds to fall below the aggregate historic dollar value of the institution's 
endowment funds. 
SPONSORED BY: 
(lu'.-(..-~-(-
iR. ti?1¥zr-
(Representative PRIEST) 
TOWN: Brunswick 
HOUSE AMENDMENT 
") 
.. 
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