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 Back | 144th General Assembly
Senate Bill # 139 w/SA 1 |
| Primary Sponsor: | DeLuca | Additional Sponsor(s): Rep. Valihura |
| CoSponsors: | { NONE...} |
| Introduced on : | 06/14/2007 | |
| Long Title: | AN ACT TO AMEND TITLE 12 OF THE DELAWARE CODE RELATING TO MANAGEMENT OF INSTITUTIONAL FUNDS. |
| Synopsis: | Section 4701 provides a short title for Chapter 47 of Title 12, providing that the Chapter will be referred to as the “Uniform Prudent Management of Institutional Funds Act.” The Chapter is based on the Uniform Prudent Management of Institutional Funds Act promulgated by National Conference of Commissioners of Uniform State Laws which approved and recommended the Act for enactment in all states in 2006.
Section 4702 provides definitions used in the Chapter.
Section 4703 adopts the prudence standard for management and investment decisions of an institutional fund. The Section requires directors or others responsible for managing and investing a fund to act as a prudent investor would, using a portfolio approach in making investments and considering the risk and return objectives of the fund. The section also describes several factors which must be considered in managing and investing an institutional fund and expressly permits an institution to pool two or more institutional funds for purposes of management and investment. It also imposes a diversification requirement unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.
Section 4704 adopts a prudence standard for institutions to appropriate for expenditure, or accumulate, endowment funds. The Section requires an institution to act in good faith and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances when deciding whether to appropriate or accumulate funds and requires the institution to follow certain factors, if relevant. The Section revises the provisions of former Chapter 47 of Title 12 that permitted the expenditure of appreciation of an endowment fund to the extent the fund had appreciation in value above the fund’s historic dollar value.
Section 4705 clarifies the nature and extent of an institution’s power to delegate investment and management functions, the standard of care to be exercised in selecting an agent, establishing the scope and terms of the delegation, and periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the scope and terms of the delegation.
Section 4706 provides rules for releasing or modifying restrictions on the management, investment or purpose of an institutional fund, and expands the rules that were found in former Chapter 47 of Title 12.
Section 4707 makes clear that 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.
Section 4708 describes the applicability of this chapter.
Section 4709 describes the relationship of this Chapter with certain otherwise applicable federal law.
Section 4710 clarifies that this Chapter shall only apply to trusts and estates expressly included within the scope of this Chapter and shall not apply to, or have any affect on, any other trusts or estates or the governing instrument thereof. The purpose of this Section is to expressly limit the applicability of the Chapter and eliminate any implication that the provisions of this Chapter shall have any affect on the validity, construction, interpretation, affect, administration, or management of any trust, estate, or the governing instrument thereof, not expressly addressed by this Chapter.
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| Amendments: |
SA 1 to SB 139 - Passed
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| Committee Reports: |
Senate Committee report 06/20/07 F=1 M=4 U=0----->
House Committee Report 06/30/07 F=0 M=6 U=0----> |
| Voting Reports: |
Senate vote: () Passed 6/20/07 6:38:10 PM------->
House vote: () Passed 7/1/07 1:24:22 AM-------> |
| Engrossed Version: |
Engrossment-------> |
Actions History:
| Jul 18, 2007 - Signed by Governor
Jul 01, 2007 - Passed by House of Representatives. Votes: 41 YES 0 NO 0 NOT VOTING 0 ABSENT
Jun 30, 2007 - Reported Out of Committee (JUDICIARY) in House with 6 On Its Merits
Jun 28, 2007 - Re-Assigned to Judiciary Committee in House
Jun 21, 2007 - Introduced and Assigned to Economic Development/Banking & Insurance Committee in House
Jun 20, 2007 - Passed by Senate. Votes: 19 YES 0 NO 0 NOT VOTING 2 ABSENT
Jun 20, 2007 - Amendment SA 1 - Passed by Senate. Votes: 18 YES 0 NO 0 NOT VOTING 3 ABSENT
Jun 20, 2007 - Amendment SA 1 - Introduced in Senate
Jun 20, 2007 - Reported Out of Committee (BANKING) in Senate with 1 Favorable, 4 On Its Merits
Jun 14, 2007 - Assigned to Banking Committee in Senate
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