Utah Admin. Code R628-2-5 - Disposition of Nonqualifying Investments
A. If at any time securities do not qualify
for investment in accordance with this rule, investments shall be disposed of
within a reasonable time. In determining what constitutes reasonable time for
the disposition of assets, the following factors, among others, shall be given
consideration:
1. the legality of sale under
the rules and regulations of the Securities and Exchange Commission and the
Utah State Securities Commission;
2. the size of the investment held in
relation to the normal trading volume therein, and the effect upon the market
price of the sale of the investment; and
3. the wishes of the donor respecting the
sale of the investment.
B. If, in the opinion of the custodian or
investment manager of the funds, an orderly liquidation of a nonqualifying
investment cannot be accomplished within a period of two years, a request may
be made to the Council for approval of a specific plan of disposition of
nonqualifying investments. Nothing contained in this paragraph shall make an
investment nonqualifying, if the retention of the investment is specifically
authorized or directed under terms of the gift, devise, or bequest, or if the
security is restricted from sale as provided in this rule.
Notes
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