(a) For the purpose of compliance with federal law designating the American Samoa Community College as a Land Grant College established for the benefit of agriculture and mechanical arts, there is established the American Samoa Community College Land Grant Endowment Fund. The Fund shall be maintained separate and apart from any other funds of the government. Use of the fund shall be administered and controlled by the Board of Higher Education. Independent records and accounts shall be maintained in connection with the fund by the Treasurer of American Samoa. An annual fiscal year financial statement of the fund shall be submitted by the Board of Higher Education and the Treasurer to the Governor and Legislature no later than 15 December 1987.
(b) The $3,000,000 received from the United States Government in support of the college as a Land Grant College is hereby credited to the Fund. The Board of Higher Education and Government shall comply with all conditions pertaining to the Fund and the income therefrom as set forth in federal laws, including but not limited to the requirement that the principal sum shall remain forever undiminished.
(c) All income from investment of the principal sum shall be credited to the account of the Fund, and shall be appropriated by the Legislature in the annual fiscal year appropriations act solely for the operation of the Land Grant programs of the college. Appropriations of income shall be made only after the Board of Higher Education has submitted to the Legislature recommendations on the use of the income. The Legislature may authorize reinvestment of the income to accumulate sufficient funds for specific purposes, related to land grant operations.
(d) The Board of Higher Education has full power and authority, subject to approval of the Legislature, to direct the investment and reinvestment of the fund without distinction between principal and income as it considers desirable; as long as the investment income is available for appropriation in accordance with subsection (c) in property as defined in subsection (e) provided that the investment shall yield a fair and reasonable annual rate of return, which is fixed at no less than 5 percentum per annum of the amount invested. The Board may invest and reinvest the fund in property in which a prudent man familiar with those matters and using care, skill, prudence, and diligence would invest in the conduct of an enterprise of like character and with like aims, insuring that the investments of the fund are diversified so as to minimize the risk of large losses unless to do so would clearly not be prudent. The power to manage investments includes, but is not limited to, the power to hold, purchase, sell, convey, assign, transfer, dispose of, lease, subdivide, or partition any assets held or proceeds thereof, to execute or cause to be executed relevant documents; to enter into protective agreements, executives proxies, and grant consent; and to do all other things necessary or appropriate to its position as an owner or creditor.
(e) Except as otherwise provided herein, the word "property" means real property, United States Government securities and agency issues, state and municipal bonds, corporate bonds, real estate mortgages, common and preferred stock, mutual funds, convertibles, real estate investment trusts, and other securities selected by the Board with the care of a prudent man. The word "property" excludes lands for sites or experimental farms of the college, and buildings including the purchase, erection, and preservation or repair thereof, except as permitted by federal laws.History: 1992, PL 22-30.