SDLRC - Codified Law 0N-8-7 - Perpetual trust fund from proceeds of grants and gifts. 0N-8-7 Perpetual trust fund from proceeds of grants and gifts.

§ 7. Perpetual trust fund from proceeds of grants and gifts. All lands, money, or other property donated, granted, or received from the United States or any other source for a university, agricultural college, normal schools, or other educational or charitable institution or purpose, and the proceeds of all such lands and other property so received from any source, shall be and remain perpetual funds, the interest and income of which, together with the rents of all such lands as may remain unsold, shall be inviolably appropriated and applied to the specific objects of the original grants or gifts. The principal of every such fund may be increased, but shall never be diverted by legislative enactment for any other purpose, and the interest and income only shall be used. Every such fund shall be deemed a trust fund held by the state, and the state shall make good all losses that may occur through any unconstitutional act or where required under the Enabling Act.

History: Amendment proposed by SL 1941, ch 320, rejected Nov., 1942; repeal proposed by SL 1975, ch 4, rejected Nov. 2, 1976; amendment proposed by SL 1998, ch 3, rejected Nov. 3, 1998; amendment proposed by SL 2000, ch 1, § 4, approved Nov. 7, 2000.