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1. INVESTMENT BOARD.

Pursuant to the authority granted by the Board of Governors of the University of North Carolina by Resolution dated April 11, 1974, regarding the acquisition, management and disposition of endowment properties and the income therefrom, the Board of Trustees hereby elects to establish and maintain an endowment fund by appointing an investment board to be known as the Board of Trustees of the Endowment Fund of North Carolina State University.

1.1 The Board of Trustees of the Endowment Fund shall be an agency of the Board of Trustees of North Carolina State University and shall have the powers and duties prescribed in section 2.

1.2 The Board of Trustees of the Endowment Fund shall consist of no fewer than six members and no more than nine members.  In addition, the Chancellor, the Chair of the Board of Trustees of NCSU, and the Chair of the Development Committee shall serve as ex officio as members of the Endowment Fund and the remainder of whom may be (but need not be) members of the Board of Trustees of North Carolina State University and who shall be elected by the Board of Trustees of North Carolina State University for overlapping terms of three years each. The terms of the initial members of the board of trustees shall be for one, two, and three years each. All elections thereafter shall be for a regular term of three years, except that any person elected by the board of trustees to fill a vacancy created otherwise than by the expiration of a term shall be elected to serve the remainder of the term of the person whom he succeeds.  The Chair of the Board of Trustees, after consultation with the Chancellor, shall make recommendations to the Board of Trustees for filling any vacancy on the Board of Trustees of the Endowment Fund.

1.3 The chair of the Board of Trustees of North Carolina State University shall be ex officio the chair of the Board of Trustees of the Endowment Fund of North Carolina State University.

2. POWERS AND DUTIES.

2.1 The Board of Trustees of the Endowment Fund may receive gifts, donations, and bequests. They may in their discretion retain such properties in the form in which they are acquired and may use then as a permanent endowment fund. They may acquire and retain in the permanent endowment fund any other monies or securities of any kind that may come to them from the Board of Governors of The University of North Carolina or from any other source, excepting always the monies received from State appropriations and from tuition, fees, and similar payments by students which are received to support the general operation of the institution.

2.2 The Board of Trustees of the Endowment Fund may sell any property, real or personal, of the endowment fund at either public or private sale. In the acquisition and disposition of real property for the benefit of an endowment fund, irrespective of the value of such property, all transactions required by law to be acted upon by the State Department of Administration, the Governor, or the Council of State shall be conducted directly between the Board of Trustees of the Endowment Fund and the State Department of Administration, the Governor, and the Council of State, without the necessity of approval by the President or the Board of Governors of The University of North Carolina.

2.3 The Board of Trustees of the Endowment Fund shall be responsible for the prudent investment of the endowment fund, in the exercise of their sound discretion, without restriction by any statute or rule of law relating to the investment of funds by fiduciaries.

2.4 The Board of Trustees of the Endowment Fund may designate a fiscal agent or agents and from time to time may change such designations.

2.5 The principal and income of all endowment properties shall be held and expended in strict accordance with the terms of the gift, devise, or bequest by which they were acquired and for the benefit of the constituent institution which it was the intention of the donor or testator to benefit.

2.6 It is the intent of the Board of Governors that the income from such endowment fund shall not take the place of State appropriations or any part thereof, but that it shall supplement the State appropriations to the end that the institution may improve and increase its functions, may enlarge its areas of service, and may become more useful to a greater number of people.

2.7 All expenditures of monies from the endowment fund shall, upon the recommendation of the chancellor of the constituent institution, be approved by the board of trustees of the constituent institution.

2.8 The board of trustees of the endowment fund shall submit a comprehensive report to the Board of Governors annually.