AB58-ASA1,5,1514 3. Except as otherwise provided by law other than this section, an institution
15may invest in any kind of property or type of investment consistent with this section.
AB58-ASA1,5,1816 4. An institution shall diversify the investments of an institutional fund unless
17the institution reasonably determines that, because of special circumstances, the
18purposes of the fund are better served without diversification.
AB58-ASA1,5,2319 5. Within a reasonable time after receiving property, an institution shall make
20and carry out decisions concerning the retention or disposition of the property or to
21rebalance a portfolio, in order to bring the institutional fund into compliance with the
22purposes, terms, and distribution requirements of the institution as necessary to
23meet other circumstances of the institution and the requirements of this section.
AB58-ASA1,6,3
16. A person that has special skills or expertise, or is selected in reliance upon
2the person's representation that the person has special skills or expertise, has a duty
3to use those skills or that expertise in managing and investing institutional funds.
AB58-ASA1,6,14 4(4) Appropriation for expenditure or accumulation of endowment fund;
5rules of construction.
(a) Subject to the intent of a donor expressed in the gift
6instrument, an institution may appropriate for expenditure or accumulate so much
7of an endowment fund as the institution determines is prudent for the uses, benefits,
8purposes, and duration for which the endowment fund is established. Unless stated
9otherwise in the gift instrument, the assets in an endowment fund are
10donor-restricted assets until appropriated for expenditure by the institution. In
11making a determination to appropriate or accumulate, the institution shall act in
12good faith, with the care that an ordinarily prudent person in a like position would
13exercise under similar circumstances, and shall consider, if relevant, the following
14factors:
AB58-ASA1,6,1515 1. The duration and preservation of the endowment fund.
AB58-ASA1,6,1616 2. The purposes of the institution and the endowment fund.
AB58-ASA1,6,1717 3. General economic conditions.
AB58-ASA1,6,1818 4. The possible effect of inflation or deflation.
AB58-ASA1,6,1919 5. The expected total return from income and the appreciation of investments.
AB58-ASA1,6,2020 6. Other resources of the institution.
AB58-ASA1,6,2121 7. The investment policy of the institution.
AB58-ASA1,6,2322 (b) To limit the authority to appropriate for expenditure or accumulate under
23par. (a), a gift instrument shall specifically state the limitation.
AB58-ASA1,7,224 (c) Terms in a gift instrument designating a gift as an endowment, or a direction
25or authorization in the gift instrument to use only "income," "interest," "dividends,"

1or "rents, issues, or profits," or "to preserve the principal intact," or words of similar
2import:
AB58-ASA1,7,43 1. Create an endowment fund of permanent duration, unless other language
4in the gift instrument limits the duration or purpose of the fund.
AB58-ASA1,7,65 2. Do not otherwise limit the authority to appropriate for expenditure or
6accumulate under par. (a).
AB58-ASA1,7,13 7(5) Delegation of management and investment functions. (a) Subject to any
8specific limitation set forth in a gift instrument or in law other than this section, an
9institution may delegate to an external agent the management and investment of an
10institutional fund to the extent that an institution could prudently delegate under
11the circumstances. An institution shall act in good faith, with the care that an
12ordinarily prudent person in a like position would exercise under similar
13circumstances, in all of the following:
AB58-ASA1,7,1414 1. Selecting an agent.
AB58-ASA1,7,1615 2. Establishing the scope and terms of the delegation, consistent with the
16purposes of the institution and the institutional fund.
AB58-ASA1,7,1817 3. Periodically reviewing the agent's actions in order to monitor the agent's
18performance and compliance with the scope and terms of the delegation.
AB58-ASA1,7,2019 (b) In performing a delegated function, an agent owes a duty to the institution
20to exercise reasonable care to comply with the scope and terms of the delegation.
AB58-ASA1,7,2221 (c) An institution that complies with par. (a) is not liable for the decisions or
22actions of an agent to which the function was delegated.
AB58-ASA1,8,223 (d) By accepting delegation of a management or investment function from an
24institution that is subject to the laws of this state, an agent submits to the

1jurisdiction of the courts of this state in all proceedings arising from or related to the
2delegation or the performance of the delegated function.
AB58-ASA1,8,53 (e) An institution may delegate management and investment functions to its
4committees, officers, or employees as authorized by law of this state other than this
5section.
AB58-ASA1,8,11 6(6) Release or modification of restrictions on management, investment, or
7purpose.
(a) If the donor consents in a record, an institution may release or modify,
8in whole or in part, a restriction contained in a gift instrument on the management,
9investment, or purpose of an institutional fund. A release or modification may not
10allow a fund to be used for a purpose other than a charitable purpose of the
11institution.
AB58-ASA1,8,2012 (b) The court, upon application of an institution, may modify a restriction
13contained in a gift instrument regarding the management or investment of an
14institutional fund if the restriction has become impracticable or wasteful, if it
15impairs the management or investment of the fund, or if, because of circumstances
16not anticipated by the donor, a modification of a restriction will further the purposes
17of the fund. The institution shall notify the attorney general of the application, and
18the attorney general shall be given an opportunity to be heard. To the extent
19practicable, any modification must be made in accordance with the donor's probable
20intention.
AB58-ASA1,9,221 (c) If a particular charitable purpose or a restriction contained in a gift
22instrument on the use of an institutional fund becomes unlawful, impracticable,
23impossible to achieve, or wasteful, the court, upon application of an institution, may
24modify the purpose of the fund or the restriction on the use of the fund in a manner
25consistent with the charitable purposes expressed in the gift instrument. The

1institution shall notify the attorney general of the application, and the attorney
2general shall be given an opportunity to be heard.
AB58-ASA1,9,73 (d) If an institution determines that a restriction contained in a gift instrument
4on the management, investment, or purpose of an institutional fund is unlawful,
5impracticable, impossible to achieve, or wasteful, the institution, 60 days after
6notification to the attorney general, may release or modify the restriction, in whole
7or part, if all of the following occur:
AB58-ASA1,9,98 1. The institutional fund subject to the restriction has a total value of less than
9$75,000.
AB58-ASA1,9,1010 2. More than 20 years have elapsed since the fund was established.
AB58-ASA1,9,1211 3. The institution uses the property in a manner consistent with the charitable
12purposes expressed in the gift instrument.
AB58-ASA1,9,15 13(7) Reviewing compliance. Compliance with this section is determined in light
14of the facts and circumstances existing at the time a decision is made or action is
15taken, and not by hindsight.
AB58-ASA1,9,20 16(8) Application to existing institutional funds. This section applies to
17institutional funds existing on or established after the effective date of this
18subsection .... [LRB inserts date]. As applied to institutional funds existing on the
19effective date of this subsection .... [LRB inserts date], this section governs only
20decisions made or actions taken on or after that date.
AB58-ASA1,9,25 21(9) Relation to federal Electronic Signatures in Global and National
22Commerce Act.
This section modifies, limits, and supersedes the federal Electronic
23Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but does not
24modify, limit, or supersede section 101 of that act, 15 USC 7001 (a), or authorize

1electronic delivery of any of the notices described in section 103 of that act, 15 USC
27003
(b).
AB58-ASA1,10,5 3(10) Uniformity of application and construction. In applying and construing
4this section, consideration shall be given to the need to promote uniformity of the law
5with respect to its subject matter among states that enact it.
AB58-ASA1, s. 5 6Section 5. 615.10 (5) of the statutes is amended to read:
AB58-ASA1,10,87 615.10 (5) Investments. Assets of a segregated account under this section shall
8be invested in accordance with ch. 620 881.
AB58-ASA1, s. 6 9Section 6. 620.25 (2) of the statutes is amended to read:
AB58-ASA1,10,1010 620.25 (2) This section does not apply to s. ss. 234.26 and 615.10.
AB58-ASA1, s. 7 11Section 7. 881.01 (2) (a) of the statutes is amended to read:
AB58-ASA1,10,1412 881.01 (2) (a) Except as provided in s. 112.10 112.11 and except as otherwise
13provided in par. (b), a fiduciary who invests and manages assets owes a duty to the
14beneficiaries to comply with the prudent investor rule set forth in this section.
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