{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1101.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1101.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1101.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1101.html"}],"law_id":56908,"edition_id":1,"section_id":56908,"structure_id":14908,"section_number":"64.2-1101","catch_line":"Standard of conduct in managing and investing institutional fund","history":"1973, c. 167, \u00a7\u00a7 55-268.4, 55-268.6; 2008, c. 184, \u00a7 55-268.13; 2012, c. 614.","full_text":"A\n\nSubject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.B\n\nIn addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.C\n\nIn managing and investing an institutional fund, an institution:1\n\nMay incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and2\n\nShall make a reasonable effort to verify facts relevant to the management and investment of the fund.D\n\nAn institution may pool two or more institutional funds for purposes of management and investment.E\n\nExcept as otherwise provided by a gift instrument, the following rules apply:1\n\nIn managing and investing an institutional fund, the following factors, if relevant, shall be considered:\n\t\t\t\ta. General economic conditions;\n\t\t\t\tb. The possible effect of inflation or deflation;\n\t\t\t\tc. The expected tax consequences, if any, of investment decisions or strategies;\n\t\t\t\td. The role that each investment or course of action plays within the overall investment portfolio of the fund;\n\t\t\t\te. The expected total return from income and the appreciation of investments;\n\t\t\t\tf. Other resources of the institution;\n\t\t\t\tg. The needs of the institution and the fund to make distributions and to preserve capital; and\n\t\t\t\th. An asset’s special relationship or special value, if any, to the charitable purposes of the institution.2\n\nManagement and investment decisions about an individual asset shall be made not in isolation but rather in the context of the institutional fund’s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.3\n\nExcept as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.4\n\nAn institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.5\n\nWithin a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.6\n\nA person that has special skills or expertise, or is selected in reliance upon the person’s representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.","order_by":null,"text":{"0":{"id":208439,"text":"Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":208440,"text":"In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":208441,"text":"In managing and investing an institutional fund, an institution:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":208442,"text":"May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":208443,"text":"Shall make a reasonable effort to verify facts relevant to the management and investment of the fund.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":208444,"text":"An institution may pool two or more institutional funds for purposes of management and investment.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"6":{"id":208445,"text":"Except as otherwise provided by a gift instrument, the following rules apply:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"7":{"id":208446,"text":"In managing and investing an institutional fund, the following factors, if relevant, shall be considered:\n\t\t\t\ta. General economic conditions;\n\t\t\t\tb. The possible effect of inflation or deflation;\n\t\t\t\tc. The expected tax consequences, if any, of investment decisions or strategies;\n\t\t\t\td. The role that each investment or course of action plays within the overall investment portfolio of the fund;\n\t\t\t\te. The expected total return from income and the appreciation of investments;\n\t\t\t\tf. Other resources of the institution;\n\t\t\t\tg. The needs of the institution and the fund to make distributions and to preserve capital; and\n\t\t\t\th. An asset’s special relationship or special value, if any, to the charitable purposes of the institution.","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"8":{"id":208447,"text":"Management and investment decisions about an individual asset shall be made not in isolation but rather in the context of the institutional fund’s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"9":{"id":208448,"text":"Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"10":{"id":208449,"text":"An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"11":{"id":208450,"text":"Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"E6"},"12":{"id":208451,"text":"A person that has special skills or expertise, or is selected in reliance upon the person’s representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.","type":"section","prefixes":["E","6"],"prefix":"6","entire_prefix":"E6","prefix_anchor":"E6","level":2,"prior_prefix":"E5"}},"ancestry":[{"id":14908,"edition_id":1,"name":"Uniform Prudent Management of Institutional Funds Act","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:50:43","date_modified":"2026-06-26 03:50:43","permalink":{"id":274069,"object_type":"structure","relational_id":14908,"identifier":"11","token":"64.2\/III\/11","url":"\/64.2\/III\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12724,"edition_id":1,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12723,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":273811,"object_type":"structure","relational_id":12724,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12723,"edition_id":1,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":272781,"object_type":"structure","relational_id":12723,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84375,"structure_id":14908,"section_number":"64.2-1100","catch_line":"Definitions","url":"\/64.2-1100\/","token":"64.2\/III\/11\/64.2-1100","metadata":false},{"id":56908,"structure_id":14908,"section_number":"64.2-1101","catch_line":"Standard of conduct in managing and investing institutional fund","url":"\/64.2-1101\/","token":"64.2\/III\/11\/64.2-1101","metadata":false},{"id":65845,"structure_id":14908,"section_number":"64.2-1102","catch_line":"Appropriation for expenditure or accumulation of endowment fund; rules of construction","url":"\/64.2-1102\/","token":"64.2\/III\/11\/64.2-1102","metadata":false},{"id":87071,"structure_id":14908,"section_number":"64.2-1103","catch_line":"Delegation of management and investment functions","url":"\/64.2-1103\/","token":"64.2\/III\/11\/64.2-1103","metadata":false},{"id":70158,"structure_id":14908,"section_number":"64.2-1104","catch_line":"Release or modification of restrictions on management, investment, or purpose","url":"\/64.2-1104\/","token":"64.2\/III\/11\/64.2-1104","metadata":false},{"id":62888,"structure_id":14908,"section_number":"64.2-1105","catch_line":"Reviewing compliance","url":"\/64.2-1105\/","token":"64.2\/III\/11\/64.2-1105","metadata":false},{"id":59935,"structure_id":14908,"section_number":"64.2-1106","catch_line":"Application to existing institutional funds","url":"\/64.2-1106\/","token":"64.2\/III\/11\/64.2-1106","metadata":false},{"id":70621,"structure_id":14908,"section_number":"64.2-1107","catch_line":"Relation to Electronic Signatures in Global and National Commerce Act","url":"\/64.2-1107\/","token":"64.2\/III\/11\/64.2-1107","metadata":false},{"id":85902,"structure_id":14908,"section_number":"64.2-1108","catch_line":"Uniformity of application and construction","url":"\/64.2-1108\/","token":"64.2\/III\/11\/64.2-1108","metadata":false}],"previous_section":{"id":84375,"structure_id":14908,"section_number":"64.2-1100","catch_line":"Definitions","url":"\/64.2-1100\/","token":"64.2\/III\/11\/64.2-1100","metadata":false},"next_section":{"id":65845,"structure_id":14908,"section_number":"64.2-1102","catch_line":"Appropriation for expenditure or accumulation of endowment fund; rules of construction","url":"\/64.2-1102\/","token":"64.2\/III\/11\/64.2-1102","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1101\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 167 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1973 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2008, chapter 184<\/a>; in 2012, chapter 614<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":274075,"object_type":"law","relational_id":56908,"identifier":"64.2-1101","token":"64.2\/III\/11\/64.2-1101","url":"\/64.2-1101\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1101\/","token":"64.2\/III\/11\/64.2-1101","dublin_core":{"Title":"Standard of conduct in managing and investing institutional fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1101","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Subject to the intent<\/span> of a donor expressed in a gift instrument<\/span>, an institution, in managing and investing an institutional fund<\/span>, shall consider the charitable purposes<\/span> of the institution and the purposes of the institutional fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In addition to complying with the duty of loyalty imposed by law<\/span> other than this chapter, each person<\/span> responsible for managing and investing an institutional fund<\/span> shall manage and invest the fund in good faith and with the care an ordinarily prudent person<\/span> in a like position would exercise under similar circumstances. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In managing and investing an institutional fund<\/span>, an institution: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> May incur only costs that are appropriate and reasonable in relation to the assets<\/span>, the purposes of the institution, and the skills available to the institution; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Shall make a reasonable effort to verify facts<\/span> relevant to the management and investment of the fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> An institution may pool two or more institutional funds<\/span> for purposes of management and investment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Except as otherwise provided by a gift instrument<\/span>, the following rules apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In managing and investing an institutional fund<\/span>, the following factors, if relevant, shall be considered:\n\t\t\t\ta. General economic conditions;\n\t\t\t\tb. The possible effect of inflation or deflation;\n\t\t\t\tc. The expected tax consequences, if any, of investment decisions or strategies;\n\t\t\t\td. The role that each investment or course of action plays within the overall investment portfolio of the fund;\n\t\t\t\te. The expected total return from income and the appreciation of investments;\n\t\t\t\tf. Other resources of the institution;\n\t\t\t\tg. The needs of the institution and the fund to make distributions and to preserve capital; and\n\t\t\t\th. An asset’s special relationship or special value<\/span>, if any, to the charitable purposes<\/span> of the institution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Management and investment decisions about an individual asset shall be made not in isolation but rather in the context of the institutional fund<\/span>’s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Except as otherwise provided by law<\/span> other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An institution shall diversify the investments of an institutional fund<\/span> unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition<\/span> of the property or to rebalance a portfolio, in order<\/span> to bring the institutional fund<\/span> into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A person<\/span> that has special skills or expertise, or is selected in reliance upon the person<\/span>’s representation that the person<\/span> has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSTANDARD OF CONDUCT IN MANAGING AND INVESTING INSTITUTIONAL FUND (\u00a7 64.2-1101)\n\nA. Subject to the intent of a donor expressed in a gift instrument, an\ninstitution, in managing and investing an institutional fund, shall consider the\ncharitable purposes of the institution and the purposes of the institutional\nfund.\n\nB. In addition to complying with the duty of loyalty imposed by law other than\nthis chapter, each person responsible for managing and investing an\ninstitutional fund shall manage and invest the fund in good faith and with the\ncare an ordinarily prudent person in a like position would exercise under\nsimilar circumstances.\n\nC. In managing and investing an institutional fund, an institution:\n\n 1. May incur only costs that are appropriate and reasonable in relation to the\n assets, the purposes of the institution, and the skills available to the\n institution; and\n\n 2. Shall make a reasonable effort to verify facts relevant to the management\n and investment of the fund.\n\nD. An institution may pool two or more institutional funds for purposes of\nmanagement and investment.\n\nE. Except as otherwise provided by a gift instrument, the following rules apply:\n\n 1. In managing and investing an institutional fund, the following factors, if\n relevant, shall be considered:\n \t\t\t\ta. General economic conditions;\n \t\t\t\tb. The possible effect of inflation or deflation;\n \t\t\t\tc. The expected tax consequences, if any, of investment decisions or\n strategies;\n \t\t\t\td. The role that each investment or course of action plays within the\n overall investment portfolio of the fund;\n \t\t\t\te. The expected total return from income and the appreciation of\n investments;\n \t\t\t\tf. Other resources of the institution;\n \t\t\t\tg. The needs of the institution and the fund to make distributions and to\n preserve capital; and\n \t\t\t\th. An asset’s special relationship or special value, if any, to the\n charitable purposes of the institution.\n\n 2. Management and investment decisions about an individual asset shall be made\n not in isolation but rather in the context of the institutional fund’s\n portfolio of investments as a whole and as a part of an overall investment\n strategy having risk and return objectives reasonably suited to the fund and\n to the institution.\n\n 3. Except as otherwise provided by law other than this chapter, an institution\n may invest in any kind of property or type of investment consistent with this\n section.\n\n 4. An institution shall diversify the investments of an institutional fund\n unless the institution reasonably determines that, because of special\n circumstances, the purposes of the fund are better served without\n diversification.\n\n 5. Within a reasonable time after receiving property, an institution shall\n make and carry out decisions concerning the retention or disposition of the\n property or to rebalance a portfolio, in order to bring the institutional fund\n into compliance with the purposes, terms, and distribution requirements of the\n institution as necessary to meet other circumstances of the institution and\n the requirements of this chapter.\n\n 6. A person that has special skills or expertise, or is selected in reliance\n upon the person’s representation that the person has special skills or\n expertise, has a duty to use those skills or that expertise in managing and\n investing institutional funds.\n\nHISTORY: 1973, c. 167, \u00a7\u00a7 55-268.4, 55-268.6; 2008, c. 184, \u00a7 55-268.13;\n2012, c. 614.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}