1. (a) The permanent fund may hold assets not otherwise authorized under 15 AAC 137.410 - 15 AAC 137.520 that

   1. (1) were held by the permanent fund before January 1, 2006;
   2. (2) are distributed to the permanent fund as the result of a liquidation of other assets held by the fund; or
   3. (3) are acquired by a manager of permanent fund assets because the assets are included in an investment index that is applied by the APFC to measure that manager's investment performance.
2. (b) The permanent fund may hold an asset described in (a) of this section so long as holding the asset satisfies the prudent-investor rule stated in AS 37.13.120(a).
3. (c) The APFC must liquidate, restructure, or otherwise bring into compliance a permanent fund investment that ceases to satisfy the prudent investor rule stated in AS 37.13.120(a) within six months after the asset first fails to satisfy that rule.

(Eff. 1/1/2006, Register 177)

Authority: AS 37.13.120, AS 37.13.206