Amendment #288 to H3900

Authorizing municipal use of prudent investor standards

Mr. Roy of Franklin moves to amend the bill by adding the following section:

"SECTION  XXXX.  SECTION 1. Section 54 of chapter 44 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting the following subtitle:

“(a) General Rule:”

Section 2. Said section is hereby amended by inserting at the end thereof, the following subsection:-

(b) Prudent Investor Rule.

This paragraph shall take effect in any city, town or district upon acceptance in accordance with the provisions of section 4 of chapter 4. Upon acceptance of this paragraph any city, town, or district may manage trust funds held in its custody as a combined investment pool and may invest said funds in accordance with the provisions of the Massachusetts Prudent Investor Act of Chapter 203C of the General Laws and not in accordance with paragraph (a) of this section. If any provision of this paragraph conflicts with the terms of a bequest, trust, or other instrument that expresses the clear intent of the donor, then such funds may be managed and invested only in accordance with the terms of such bequest, trust, or other instrument.