540A.7  Standard of conduct.

In the administration of the powers to appropriate appreciation, to make and retain investments, and to delegate investment management of institutional funds, members of a governing board of an institution shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. In so doing they shall consider long-term and short-term needs of the institution in carrying out its educational, religious, charitable, or other eleemosynary purposes, its present and anticipated financial requirements, expected total return on its investments, price level trends, and general economic conditions.

Section History: Recent form

  90 Acts, ch 1096, §7

  C91, § 122C.7

  C93, § 540A.7

Internal References

  Referred to in § 540A.3


Previous Section 540A.6

Next Section 540A.8


Return To Home index


© 1999 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 18 15:00:31 CST 1999
URL: /DOCS/IACODE/1999/540A/7.html
jhf