[§312-9] Public-private partners for literacy trust fund. (a) There is established as a separate fund of the Hawaii Community Foundation, a Hawaii nonprofit corporation, by that certain instrument of gift dated May 2, 1991, a fund known as the public-private partners for literacy trust fund. Income and capital gains from the fund shall be used exclusively for family literacy programs, as defined in the instrument of gift. The fund shall consist of private contributions and the income and capital gains earned by the fund. The fund shall be subject to the following restrictions:
(1) Only the income and capital gains earned by investment of the fund's moneys may be expended; and
(2) Income and capital gains earned by investment of the fund's moneys may not be used during any period when the value of the fund is less than the aggregate principal sum contributed to the fund.
(b) The aggregate principal sum deposited in the fund and any income and capital gains earned by the fund but not used for family literacy programs shall be invested, in accordance with the provisions of the instrument of gift, in a manner intended to maximize the rate of return on investment of the fund consistent with the objective of preserving the principal amounts contributed to the fund.
(c) If the fund is terminated or the Hawaii Community Foundation is dissolved, the principal amount of all contributions and any other amounts remaining in the fund shall be distributed in accordance with the provisions of the instrument of gift.
(d) The results of the annual audit of the Hawaii Community Foundation shall be submitted to the board of education, through the state librarian, not more than thirty days after the Hawaii Community Foundation receives the audit results. The Hawaii Community Foundation shall retain for a period of three years, and permit the department of education and the state librarian, or their duly authorized representatives, to inspect and have access to, all documents, papers, books, records, and other evidence that are pertinent to the fund.
(e) The purpose of this section is to create, by statute, a private charitable trust to ensure its perpetual existence. This is not a fund to be placed in the state treasury, and the State shall not administer the fund nor be liable for its operation or solvency. The fund shall be a private charitable trust to be administered by a private trust company as the trustee. [L 1993, c 361, pt of §1]