B. The Commissioners of the Land Office shall be responsible for the investment of the permanent common school and other educational funds, and public building funds solely in the best interests of the beneficiaries and:

1. 1. For the exclusive purpose of providing maximum benefits to current and future beneficiaries, and defraying reasonable expenses of administering the trust funds;
2. 2. With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like enterprise of a like character and like aim would use;
3. 3. By diversifying the investments of the trust funds so as to minimize the risk of large losses; and
4. 4. In accordance with the law, documents and instruments governing the administration and investment of the permanent common school and other educational funds and public building funds.

C. The Legislature shall provide by law conditions upon which the permanent common school fund, other educational funds and public building funds may be loaned or invested and shall do all things necessary for the safety of the funds and permanency of the investment.

Historical Data

Amended by Laws 1953, HJR 519, Section 1, State Question 362, Legislative Referendum 108, adopted at election held July 6, 1954; Amended by Laws 1967, HJR 524, Section 1, State Question 442, Legislative Referendum 158, adopted at election held August 27, 1968; Amended by Laws 1971, SJR 24, Section 1, State Question 481, Legislative Referendum 187, adopted at election held December 7, 1971; Amended by Laws 1986, State Question 599, Legislative Referendum 261, adopted at election held August 26, 1986; Amended by Laws 1994, HJR 1028, Section 1, State Question 665, Legislative Referendum 299, adopted at election held on November 8, 1994 (superseded document available).