§ 5-1-251. SAME—CONFLICT OF INTEREST.

(a)

Except as otherwise provided, no trustee and no employee of the Board of Trustees shall have any direct interest in the gains or profits of any investment made by the Board of Trustees. No trustee or employee of the Board shall, directly or indirectly, for himself or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the Board of Trustees nor shall any trustee or employee of the Board of Trustees become an endorser or surety or in any manner an obligor for moneys loaned to or borrowed from the Board of Trustees.

(b)

A member of the Board of Trustees must discharge the member's fiduciary duties regarding the retirement system:

(1)

Only in the best interest of the members and their beneficiaries;

(2)

Only to provide benefits to the members and their beneficiaries, and defray reasonable expenses of administering the retirement system;

(3)

With the care, skill, prudence, and diligence under the circumstances that a prudent person acting in a similar capacity and familiar with the same matters would use to conduct a similar enterprise with similar purposes;

(4)

By diversifying the investments of the retirement system to minimize the risk of large losses, unless it is clearly not prudent to diversify under the circumstances;

(5)

According to a good faith interpretation of the law governing the retirement system; and

(6)

According to a good faith interpretation of the documents and instruments governing the retirement system, if they comply with this article.

(1988 Code, § 23-89) (Bill No. 32-03, § 1, 7-1-2004; Bill No. 30-10, § 2, 7-1-2010)