[§517D-4] Appropriation of appreciation; accumulation of income. (a) The governing board may appropriate for expenditure for the uses and purposes for which an endowment fund is established so much of the net appreciation, realized and unrealized, in the fair value of the assets of an endowment fund over the historic dollar value of the fund as is prudent under the standard established by section 517D-8.

(b) The governing board may accumulate so much of the annual net income of an endowment fund as is prudent under the standard established by section 517D-8, and may hold any or all of the accumulated income in an income reserve for subsequent expenditure for the uses and purposes for which the endowment fund is established or may add any or all of the accumulated income to the principal of the endowment fund, as is prudent under this standard.

(c) This section does not limit the authority of the governing board to expend funds or accumulate net income and add the same to principal as permitted under other law, the terms of the applicable gift instrument, or the charter of the institution. [L 1995, c 46, pt of §1]