Indiana § 5-10.2-11-16 Divestment; exemption for certain passively managed comingled funds

Indiana Statutes

§ 5-10.2-11-16 — Divestment; exemption for certain passively managed comingled funds

Indiana·Title 5 STATE AND LOCAL ADMINISTRATION·Art. 10.2 PUBLIC RETIREMENT AND DISABILITY·Ch. 11 Divestment Related to Boycott of, Divestment from, or

(a)Except as provided in sections 18 and 19 of this chapter, if, after ninety (90) days after the system's first engagement with a business under section 14 of this chapter, the business continues to engage in boycott, divest from, or sanction Israel activity, the system shall sell, redeem, divest, or withdraw all publicly traded securities of the business that are held by a fund, as follows:

(1)At least fifty percent (50%) of such assets shall be removed from a fund's assets under management within nine (9) months after the business's appearance on the restricted business list.

(2)One hundred percent (100%) of such assets shall be removed from a fund's assets under management within fifteen (15) months after the business's appearance on the restricted business list.

(b)If a business t

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(a) Except as provided in sections 18 and
19 of this chapter, if, after ninety (90) days after the system's first
engagement with a business under section 14 of this chapter, the
business continues to engage in boycott, divest from, or sanction Israel
activity, the system shall sell, redeem, divest, or withdraw all publicly
traded securities of the business that are held by a fund, as follows:
(1) At least fifty percent (50%) of such assets shall be removed
from a fund's assets under management within nine (9) months
after the business's appearance on the restricted business list.
(2) One hundred percent (100%) of such assets shall be removed
from a fund's assets under management within fifteen (15) months
after the business's appearance on the restricted business list.
(b) If a business that ceased boycott, divest from, or sanction Israel
activity following engagement under section 14 of this chapter resumes
boycott, divest from, or sanction Israel activity, the business shall be
placed immediately back on the restricted business list. If a fund has
holdings in the business, the system shall sell, redeem, divest, or
withdraw all publicly traded securities of the business as provided in
subsection (a) based on the date the business is placed back on the
restricted business list. The system shall send a written notice to the
business indicating that the business was placed back on the restricted
business list and is subject to divestment.
(c) The board is not required to divest a fund's holdings in a
passively managed commingled fund that includes a restricted business
engaging in boycott, divest from, or sanction Israel activity if the
estimated cost of divestment of the commingled fund is greater than ten
percent (10%) of the total value of the restricted businesses held in the
commingled fund. The board shall include any commingled fund that
includes a restricted business that is exempted from divestment under
this subsection in the board's report submitted to the legislative council
under section 21 of this chapter.

Indiana § 5-10.2-11-16 (Divestment; exemption for certain passively managed comingled funds) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.