§88-121  Power to make agreements to protectsecurities on reorganization or otherwise.  Anything in this part to thecontrary notwithstanding, the board of trustees may enter into an agreement oragreements for the purpose of protecting the interests of the system insecurities held by the system, or for the purpose of reorganization of acorporation which issued securities so held, and deposit of securitiesthereunder with a committee or depositories appointed under the agreement, butthe agreement and deposit must first be approved in writing by a majority ofthe 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 bedistributed pursuant to any such agreement approved as aforesaid or to any planor reorganization approved in writing by a majority of the members of the boardwith a statement of their reasons for such approval.  But if securities soreceived consist in whole or in part of stock in any corporation or of bonds orobligations which are not secured by adequate collateral security or where lessthan two-thirds of the total value of the required collateral security thereforconsist of collateral other than stock, then any stock and any such bond or obligationso received shall be disposed of within five years from the time of acquisitionor before expiration of such further period or periods of time as may be fixedin 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]