§40-88  State of Hawaii endowment fundcreated.  (a)  There shall be established as a separate fund of theHonolulu symphony trust created by the trust agreement dated December 5, 1986,a fund to be known as the State of Hawaii endowment fund.  The income andcapital gains from the $2,000,000 contributed by the State of Hawaii shall betransferred on a quarterly basis to the state foundation on culture and thearts, performing and visual arts events private contribution account to be usedfor the production of music by an Oahu-based symphony orchestra as determinedby the state foundation on culture and the arts.  The State of Hawaii endowmentfund shall be subject to the restrictions that:

(1)  No part of the principal amount contributed tothe fund by the State or by matching grants shall be used for operations of theHonolulu symphony;

(2)  Income and capital gains from the fund shall notbe distributed for use in the operations of the Honolulu symphony during anyperiod that the value of the fund shall be less than the principal amountscontributed to the fund; and

(3)  The amounts contributed to the fund by the Stateshall revert to the State to the extent that matching or other conditions tothe grant of the funds are not met, and the fund also shall be subject toadditional restrictions as may be imposed with respect to transfers of funds infuture legislation appropriating sums to be contributed to the fund.

(b)  Matching conditions set forth inlegislation appropriating funds to be contributed to the State of Hawaiiendowment fund, including conditions in previous legislation appropriating sumsfor the fund, shall be satisfied to the extent that any of the following shallbe received prior to the date by which the funds are to be matched:

(1)  Cash, including the United States dollarequivalent of foreign currency, on the date of its contribution to the fund;

(2)  Personal property, including securities and cashvalue of life insurance policies, and real property transferred to thesymphony, valued by appraisal, market quotations or other generally acceptedvaluation methods as of a date on or about the date of contribution of theproperty to the fund; and

(3)  All portions of pledges that are payable notlater than five full years following the date by which the funds contributed bythe State are to be matched; provided that any sums appropriated by the Stateand matched by such pledges within the matching period shall revert to thegeneral fund to the extent the sums appropriated by the State are not matchedby actual payment of such pledges within the five-year period.

(c)  In the event that any funds contributed bythe State are to revert to the general fund of the State, pursuant tosubsection (a)(3) or (b)(3), the amount of the reversion shall be equal to theprincipal amount of the funds contributed by the State that have not beenmatched, and no part of any interest, gains, or other earnings on saidprincipal amount shall revert to the State.

(d)  The aggregate principal sum in the fundshall be invested in accordance with the provisions of the Honolulu symphonytrust in a manner intended to maximize the rate of return on investment of thefund consistent with the objective of preserving the principal amountscontributed to the fund.  In the event of the termination of the Honolulusymphony trust, the principal amount of all contributions made by the State tothe State of Hawaii endowment fund shall be distributed to the general fund ofthe State and any other amounts remaining in the State of Hawaii endowment fundshall be distributed in accordance with the provisions of the Honolulu symphonytrust.  An annual audit by an independent auditor covering the State of Hawaiiendowment fund shall be submitted to the department of accounting and general servicesby the Honolulu symphony. [L 1987, c 382, §1; am L 1988, c 258, §1; am L 1989,c 227, §1; am L 1995, c 175, §2]

 

Cross References

 

  Uniform prudent management of institutional funds act, seechapter 517E.