§ 12-18. Board of trustees—Investment authority.

The board shall have the following investment powers and authority:

(1)

The board shall be vested with full legal title to said fund, subject however, and in any event to the authority and power of the city commission to amend or terminate this trust, provided that no amendment or fund termination shall ever result in the use of any assets of this fund except for the payment of regular expenses and benefits under this plan prior to satisfaction of all liabilities with respect to covered members and their beneficiaries.

(2)

All contributions from time to time paid into the fund, and the income thereof, without distinction between principal and income, shall be held and administered by the board or its agent in the fund and the board shall not be required to segregate or invest separately any portion of the fund.

(3)

The fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatever kind, as shall be approved by the board, including but not limited to stocks, common or preferred, bonds, and other evidences of indebtedness or ownership.

(4)

The board may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable having regard for the cash requirements of the plan.

(5)

No person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided nor for any loss or diminishment of the fund except that due to his or her or its own negligence willful misconduct or lack of good faith.

(6)

The board may cause any investment in securities held by it to be registered in or transferred into the name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the trust fund.

(7)

The board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds, or other investments, comprising the fund which it may deem to be to the best interest of the fund to exercise.

(8)

The board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained.

(9)

Where any action which the board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this article can reasonably be taken or performed only after receipt by it from a member, the city or any other entity of specific information, certification, direction or instructions. The board shall be free of liability in failing to take such action or perform such duty-or function until such information, certification, direction or instruction has been received by it.

(10)

Any overpayments or underpayments from the fund to a member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the fund.

(11)

The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits herein provided for.

(12)

In any application, proceeding or action in the courts, only the city commission shall be a necessary party, and no member or other person having an interest in the fund shall be entitled to any notice or service of process.

(13)

Any of the foregoing powers and functions reposed in the board may be performed or carried out by the board through duly authorized agents, provided that the board at all times requires of and reviews reports of any such agent, provided further, that legal title to said fund shall always remain in the board.

(Ord. No. 2001-105, § 1, 4-3-01)