§ 19-8-305 — Terms of trust agreement

(a) Each trust agreement shall specify the following: (1) Its duration; (2) (A) The number, qualifications, method of election, and terms of the trustees who shall serve as the governing body of the trust. (B) (i) Each trust shall have a minimum of seven (7) trustees. (ii) Only current elected officials and active or retired employees of a local government or of a local government association may serve as trustees. (iii) A majority of the trustees must be officials or employees of participants. (C) (i) Each trustee shall be elected by the participants for a term not to exceed three (3) years. (ii) The terms of office shall be staggered so that at least one-third (1/3) of the trustees are elected each year. (D) Each participant shall be entitled to one (1) vote in each election of trustees; (3) The qualifications, terms, and conditions necessary for additional local governments to become parties to the trust; (4) The terms and conditions under which local governments may withdraw as parties to the trust; provided, that any party shall have the unconditional right to withdraw upon not more than ninety (90) days' notice; (5) The permissible methods for acquiring, holding, and disposing of real and personal property used in the operation of the trust; (6) The maximum amount of funds of participants the trust may accept for investment; (7) The permissible methods to be employed in accomplishing the partial or complete termination of the trust and for disposing of property upon the partial or complete termination; (8) The terms and conditions under which the trust agreement may be amended and supplemented; and (9) Any other necessary and proper matters. (b) Each addition of a local government as a party to a trust, each withdrawal of a local government as a party to a trust, and each amendment or supplement to a trust agreement shall be evidenced by a written supplement to the trust agreement.

Legislative History

Acts 1993, No. 583, § 5; 2009, No. 417, § 1.