A. As used in this section:
(1) "endowment funds" means funds:
(a) acquired by gift by an educational institution with respect to which the donors or other outside agencies have stipulated as a condition of the gift, and the stipulation is expressed specifically in the gift instrument, that the principal is to be maintained and invested for the purpose of producing current and future income that may either be added to the principal or expended, and the maintenance of the principal may be either: 1) held in perpetuity; or 2) expended after the passage of a stated period of time or upon the happening of a specified event; and
(b) notwithstanding the source of acquisition, that the governing board of the educational institution has determined and has designated by a written instrument, either revocable or irrevocable, to be retained for long-term investment; and
(2) "educational institution" means an educational institution designated in Article 12, Section 11 of the constitution of New Mexico and any post-secondary educational institution, which term includes an academic, vocational, technical, business, professional or other school, college or university or other organization or person offering or purporting to offer courses, instruction, training or education through correspondence or in person to any individual within this state over the compulsory school attendance age, if that post-secondary educational institution is directly supported in whole or in part by state or local taxation.
B. The board of finance, as that term is defined in Section 6-10-9 NMSA 1978, for each of the educational institutions:
(1) shall adopt regulations governing the investment and distribution of endowment funds by the institution's board of finance, which regulations shall provide at least for:
(a) the application of the standard of loyalty described in Section 45-7-606 NMSA 1978 and the Uniform Prudent Management of Institutional Funds Act [46-9A-1 to 46-9A-10 NMSA 1978];
(b) the appointment of an investment advisory committee made up of individuals having demonstrated experience and skill in the field of the investment of endowment funds; and
(c) the development of a comprehensive investment policy for the investment of endowment funds by the institution, with the advice and upon the recommendation of the investment committee; and
(2) may employ an institutional endowment funds investment manager and delegate to the manager the power to make purchases, sales, exchanges, investments and reinvestments of endowment funds.
History: Laws 1991, ch. 69, § 1; 1997, ch. 199, § 13; 2011, ch. 44, § 2.
The 2011 amendment, effective June 17, 2011, in Subsection A, eliminated the requirement that the conditions of a gift stipulate that principal will be held inviolate; and in Subsection B, required the board of finance to adopt regulations regarding the distribution of funds that apply the standard of loyalty described in Section 45-7-606 NMSA 1978.
The 1997 amendment, effective July 1, 1997, substituted "standard of conduct described in Section 6-8-10 NMSA 1978 and the Uniform Management of Institutional Funds Act" for "standard described in Section 6-8-10 NMSA 1978" in Subparagraph B(1)(a) and made minor stylistic changes in Subsection A.
Structure 2021 New Mexico Statutes
Chapter 21 - State and Private Education Institutions
Article 1 - General Provisions Relating to State Educational Institutions
Section 21-1-1 - State institutions; admission requirements to be established by boards of regents.
Section 21-1-1.2 - Dual credit for high school and post-secondary classes.
Section 21-1-2 - Matriculation and tuition fees.
Section 21-1-2.1 - Scholarship program established.
Section 21-1-3 - State educational institutions; resident students.
Section 21-1-4 - Tuition and general fee charges; definitions.
Section 21-1-4.1 - Tuition payments; residents conscripted into military service.
Section 21-1-4.7 - Foster child tuition and fee waiver eligibility; notification.
Section 21-1-7 - Removal of faculty members; compensation of secretary and treasurer restricted.
Section 21-1-7.1 - Post-tenure review process required.
Section 21-1-7.2 - Reporting; commission on higher education [higher education department].
Section 21-1-7.3 - Temporary provisions; tenure study.
Section 21-1-8 - [Eligibility for retirement pension.]
Section 21-1-9 - [Expenses of members of boards of regents.]
Section 21-1-10 - Delegation of authority.
Section 21-1-11 - [Allocation of funds.]
Section 21-1-12 - [Annual reports; contents.]
Section 21-1-14 - [Quarterly and special meetings of boards.]
Section 21-1-15 - [One member of board to reside in adjacent municipality.]
Section 21-1-16 - [Public inspection of board records.]
Section 21-1-16.1 - State institutions of higher education; presidential searches.
Section 21-1-17 - Interest in contracts by board members or employees prohibited.
Section 21-1-18 - [No personal liability for official actions.]
Section 21-1-19 - [Oaths of board members; filing.]
Section 21-1-20 - Power to hold property.
Section 21-1-21 - Capital expenditures.
Section 21-1-21.1 - State educational institutions; adequate parking.
Section 21-1-22 - [Nonsectarian operation required.]
Section 21-1-24 - Graduate programs.
Section 21-1-26 - Higher education department; general powers.
Section 21-1-26.1 - Additional duties.
Section 21-1-26.2 - Post-secondary education; adult correctional facilities.
Section 21-1-26.3 - Verification function.
Section 21-1-26.7 - Annual accountability report.
Section 21-1-26.9 - Limitation; higher education department; review of proposed campuses.
Section 21-1-26.11 - Higher education department; additional duties.
Section 21-1-26.12 - Educational needs and guidelines; accountability reports.
Section 21-1-27 - Higher education department; distribution of available funds.
Section 21-1-27.1 - Higher education endowment fund created.
Section 21-1-27.2 - Technology enhancement fund created; allocations; application review panels.
Section 21-1-27.3 - Higher education performance fund; created; administration; distributions.
Section 21-1-27.4 - Higher education program development enhancement fund; purpose.
Section 21-1-27.5 - Adult basic education fund created.
Section 21-1-27.7 - Fund created.
Section 21-1-27.8 - Adult basic education; instructional materials.
Section 21-1-27.10 - Fund created; tribal college dual credit program fund; administration.
Section 21-1-27.11 - Centers of excellence.
Section 21-1-32 - Purpose of act.
Section 21-1-33 - System of accounting and reporting; manual.
Section 21-1-34 - Educational television equipment replacement fund; disbursement.
Section 21-1-36 - New Mexico cooperative education program; purpose.
Section 21-1-37 - New Mexico cooperative education program created; administration; duties.
Section 21-1-39 - Legislative findings.
Section 21-1-40 - Prepaid higher education tuition program; feasibility study; guidelines.
Section 21-1-41 - Military access to a post-secondary educational institution.
Section 21-1-42 - Public post-secondary educational institutions; student identification number.
Section 21-1-44 - School leadership institute; created; purpose.
Section 21-1-46 - Request for access to social networking account prohibited.
Section 21-1-47 - Statewide advanced placement policy.
Section 21-1-48 - Regional two plus two pilot project; eligibility; evaluation and reporting.