§88-121  Power to make agreements to protect
securities on reorganization or otherwise.  Anything in this part to the
contrary notwithstanding, the board of trustees may enter into an agreement or
agreements for the purpose of protecting the interests of the system in
securities held by the system, or for the purpose of reorganization of a
corporation which issued securities so held, and deposit of securities
thereunder with a committee or depositories appointed under the agreement, but
the agreement and deposit must first be approved in writing by a majority of
the members of the board with a statement of their reasons for such approval. 
The board may accept corporate stock or bonds or other securities, which may be
distributed pursuant to any such agreement approved as aforesaid or to any plan
or reorganization approved in writing by a majority of the members of the board
with a statement of their reasons for such approval.  But if securities so
received consist in whole or in part of stock in any corporation or of bonds or
obligations which are not secured by adequate collateral security or where less
than two-thirds of the total value of the required collateral security therefor
consist of collateral other than stock, then any stock and any such bond or obligation
so received shall be disposed of within five years from the time of acquisition
or before expiration of such further period or periods of time as may be fixed
in writing for that purpose by the governor. [L 1925, c 55, pt of §7; RL 1935,
pt of §7926; am L 1935, c 156, §2; RL 1945, §710, subs 4; RL 1955, §6-77; HRS
§88-112; am L 1969, c 110, pt of §1]