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Caption: Board of Trustees Minutes - 1984
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136 BOARD OF TRUSTEES [January 20 Current funds will be invested with the objective of maximizing current income. Endowment Funds Investment Policy Unless otherwise directed by the donor, endowment funds are generally to be invested in one pooled account and may be invested in the following: 1. Corporate bonds that are rated "AA" or better by Moody's or Standard and Poor's and bonds of U.S. Government agencies. Not more than 5 percent of the bond portion of the portfolio will be in any one issuer, excepting the U.S. Government. 2. Stocks that are included on a buy-sell list approved by the Finance Committee and that are rated " B + " or better by Standard and Poor's. Not more than 30 percent of the equity portion of the portfolio will be invested in any one industry and not more than 10 percent of the equity portion in any one company. 3. Short-term investments approved by the Board for Current Funds. The restrictions listed above represent a change in the previous endowment policy, in which the funds were divided into three classifications (unrestricted, educational activities and student aid) with different investment objectives for each classification. T h e investment objective of the endowment funds will be to generate a stable income and to protect the funds from inflationary losses. T h e endowment pool will be invested 50 to 70 percent in bonds, 30 to 50 percent in stocks, and in short-term investments. T h e procedures related to endowment funds adopted July 16, 1975, remain in effect. O n m o t i o n of Miss F o r s y t h , this r e c o m m e n d a t i o n w a s a p p r o v e d . Authorization to Establish Bank Account in Maryland National Bank, Hagerstown, Maryland (16) At the April 15, 1982, meeting of the Board of Trustees, approval was given to enter into a contract with Harper & Row, Publishers, Inc., whereby they would provide warehousing, billing, collection, and distribution services for University of Illinois Press publications. This arrangement became effective August 1, 1982. Under the terms of our agreement with Harper & Row, they also agreed to accept and fulfill cash-with-order and credit card sales sent to their order fulfillment division in Hagerstown, Maryland. T h e checks in such cases are made payable to the University of Illinois or University of Illinois Press. In order to facilitate the cash-with-order and credit card orders, authorization is requested to open a bank account with the Maryland National Bank in Hagerstown, Maryland. Harper & Row, acting as agents of the University, would be given restricted authority to endorse checks received with orders "for deposit only." Such funds would be transferred regularly to the University's main bank account with the First National Bank of Chicago. T h e estimated volume of cash orders is $50,000 per year. It is anticipated that bank charges payable to Maryland National Bank would be less than $1,000 per year. It is recommended that the board adopt the following resolution authorizing the opening of a deposit account as described above. T h e vice president for academic affairs and the acting vice president for business and finance are in agreement with this recommendation. I concur. Resolution Be It Resolved, that Maryland National Bank (the Bank) is designated as a depository of this Corporation and that a checking account be opened and maintained in the name of this Corporation with the Bank, and
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