This text of Indiana § 16-22-3-19.5 (Hospital property sold before 1990) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
5.
(a)This section applies to a county that
before 1990 sold its hospital property and established a medical care
trust board to hold the proceeds from the sale.
(b)As used in this section, "trust board" refers to a medical care
trust board established to hold the proceeds from the sale of a county
hospital.
(c)The trust board shall contract with investment managers,
investment advisors, investment counsel, trust companies, banks, or
other finance professionals to assist the trust board in an investment
program. Money held by the trust board must be invested in accordance
with the terms of an investment policy statement developed by the
board of directors of the trust board with an investment advisor that:
(1)is approved by the board of directors; and
(2)complies with the diversificat
Free access — add to your briefcase to read the full text and ask questions with AI
5. (a) This section applies to a county that
before 1990 sold its hospital property and established a medical care
trust board to hold the proceeds from the sale.
(b) As used in this section, "trust board" refers to a medical care
trust board established to hold the proceeds from the sale of a county
hospital.
(c) The trust board shall contract with investment managers,
investment advisors, investment counsel, trust companies, banks, or
other finance professionals to assist the trust board in an investment
program. Money held by the trust board must be invested in accordance
with the terms of an investment policy statement developed by the
board of directors of the trust board with an investment advisor that:
(1) is approved by the board of directors; and
(2) complies with the diversification, risk management, and other
fiduciary requirements common to the management of charitable
trusts, including that the funds of the trust board must be invested
according to the prudent investor rule. The investment policy
statement must include the limitation on the investment in
equities specified in subsection (e).
(d) Money held by the trust board:
(1) may be invested in any legal, marketable securities; and
(2) is not subject to any other investment limitations in the law,
other than the limitations under this section and the limitations in
the investment policy statement.
(e) The total amount of the funds invested by the trust board in
equity securities under this section may not exceed fifty-five percent
(55%) of the total value of the portfolio of funds invested by the trust
board under this section. However:
(1) an investment that complies with this subsection when the
investment is made remains legal even if a subsequent change in
the value of the investment or a change in the value of the total
portfolio of funds invested by the trust board causes the
percentage of investments in equity securities to exceed the
fifty-five percent (55%) limit on equity securities; and
(2) if the total amount of the funds invested by a trust board in
equity securities exceeds the fifty-five percent (55%) limit on
equity securities because of a change described in subdivision (1),
the investments by the trust board must be rebalanced to comply
with the fifty-five percent (55%) limit on equity investments not
later than one hundred twenty (120) days after the equity
investments first exceed that limit.
(f) The following apply to the trust board:
(1) The trust board must be audited annually by an independent
third party auditor.
(2) The board of directors of the trust board must meet at least
quarterly to receive a quarterly compliance and performance
update from the investment advisor.
(3) Three (3) nonvoting advisors who are officers of different
county designated depositories shall attend the quarterly meetings
in an advisory capacity to assist the board of directors of the trust
board:
(A) in reviewing the compliance and performance report from
the investment advisor; and
(B) in reviewing the annual audit required by subdivision (1).
The three (3) nonvoting advisors may not vote on any action of
the board of directors. The board of directors of the trust board
shall by majority vote select the three (3) depositories from which
the three (3) nonvoting advisors will be chosen. Each of the three
(3) depositories selected under this subdivision shall select an
officer of the depository to serve as one (1) of the three (3)
nonvoting advisors. Each nonvoting advisor shall serve a term of
three (3) years, and the nonvoting advisor shall continue to serve
until a successor is selected. However, to provide for staggered
terms, the board of directors of the trust board shall provide that
the initial term of one (1) nonvoting advisor is one (1) year, the
initial term of one (1) nonvoting advisor is two (2) years, and the
initial term of one (1) nonvoting advisor is three (3) years. For
purposes of avoiding a conflict of interest, a financial institution
for which a nonvoting advisor is an officer (and any affiliate of
such a financial institution) may not receive a commission or
other compensation for investments made by the trust board under
this section.