1. (a) The board shall invest its assets with the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims. The board also shall diversify investments in accordance with prudent investment standards, subject to the limitations and restrictions set forth in IC 5-10.2-2-18 .

2. (b) The board may:

   1. (1) make or have investigations made concerning investments; and
   2. (2) contract for and employ investment counsel to advise and assist in the purchase and sale of securities.

3. (c) The board is not subject to IC 4-13 , IC 4-13.6 , or IC 5-16 when managing real property as an investment. A management agreement entered into by the board shall ensure that the management agent acts in a prudent manner regarding the purchase of goods and services. Contracts for the management of investment property shall be submitted to the governor, the attorney general, and the budget agency for approval. A contract for the management of real property as an investment:

   1. (1) may not exceed a four (4) year term and must be based upon guidelines established by the board;
   2. (2) may provide that the property manager may collect rent and make disbursements for routine operating expenses such as utilities, cleaning, maintenance, and minor tenant finish needs;
   3. (3) shall establish, consistent with the board's duty under IC 30-4-3-3 (c), guidelines for the prudent management of expenditures related to routine operation and capital improvements; and

   4. (4) may provide specific guidelines for the board to:

      1. (A) purchase new properties;
      2. (B) contract for the construction or repair of properties; and

      3. (C) lease or sell properties;

         without individual transactions requiring the approval of the governor, the attorney general, the Indiana department of administration, and the budget agency. However, each individual contract involving the purchase or sale of real property is subject to review and approval by the attorney general at the specific request of the attorney general.

4. (d) Whenever the board takes bids in managing or selling real property, the board shall require a bid submitted by a trust (as defined in IC 30-4-1-1 (a)) to identify all the following:

   1. (1) Each beneficiary of the trust.

   2. (2) Each settlor empowered to revoke or modify the trust.

      [Pre-2006 Education Finance Recodification Citation: 21-6.1-3-9.]

As added by P.L.2-2006, SEC.28.