H.B. 333

1

GOVERNMENT INVESTMENT STANDARDS
2 AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Brent H. Goodfellow
6 This act modifies the State Money Management Act by modifying the prudent person
7 rule for managing investments.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 51-7-14, as last amended by Chapter 44, Laws of Utah 1984
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 51-7-14 is amended to read:
13 51-7-14. Prudent man rule for management of investments -- Sale of security or
14 investment for less than cost.
15 (1) Selection of investments as authorized by Sections 51-7-11 , 51-7-12 , and 51-7-13
16 shall be made with the exercise of that degree of judgment and care, under circumstances then
17 prevailing, [which men] that persons of prudence, discretion, and intelligence exercise in the
18 management of their own affairs, not for speculation but for investment, considering the
19 probable safety of their capital, as well as the probable benefits to be derived and the probable
20 duration for which [such] that investment may be made, [and] considering the investment
21 objectives specified in Section 51-7-17 , and considering the investment portfolio as a whole.
22 (2) A public treasurer may sell or otherwise dispose of at less than cost any security or
23 investment in which public funds under his jurisdiction have been invested if such sale or other
24 disposition tends to maximize the benefits that may be derived from such changed investment.

Legislative Review Note
as of 2-18-03 4:43 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel