07.01 - Benefit Level Increase and Bylaws

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� � statements required by law. ARTICLE VI -1NVESTMENTS Section 1- STANDARD OF DILIGENCE. Trustees owe a fduciary duty to the members of the Association who are its beneficiaries, to the taxpayers of the state who help finance the plan, and to the state of Minnesota which established the plan. The Trustees shall discharge their duties in good faith and shall exercise that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived therefrom. Section 2- INVESTMENT POLICY. The Board of Trustees shall investigate and prepare for the safe and profitable investment of Association funds in conformance with state statutes. The Special Fund assets of the Association shall be invested in securities that are authorized investments under Minn. Stat. §356A.06, subdivision 6 or 7. The Board shall have on file a copy of the investment policy of the Association. Section 3— BROKER CERTIFICATION. The Association shall provide annually to its broker a written statement of investment restrictions from the applicable state laws and the Association's investment policy. The broker must annually submit the Broker Certification fortn to the Association before the Association enters or continues business with the said broker. ARTICLE VII - FLJNDS Section 1- FIJNDS. All money received by the Association shall be kept in two separate funds. Disbursements from the funds shall be in accordance with Minnesota Statutes and the bylaws for the Association. Section 2- GENERAL FUND. One fund shall be called the General Fund to which shall be credited all monies received by this Association from dues, fines, initiation fees, entertainment revenues, and other miscellaneous sources not mandated by law or these bylaws. Funds may be disbursed by the Board of Trustees for any purpose reasonably suited to the welfare of the Association and its members. Section 3- SPECIAL FiIND. The Special Fund shall be credited with all fre state aid money received pursuant to state law, all taxes levied by or other revenues received from the municipality pursuant to state law, any money or property donated which is specified for use for the support of the Special Fund, and any interest earned upon the assets of the Special Fund. Disbursements from the Special Fund shall not be made for any purpose other than one of the following: (a) Payment of inembers' service pensions in accordance with state law and these bylaws; (b) Payment of ancillary benefits in accordance with state law and these bylaws; � (c) Administrative expenses as authorized pursuant to Minn. Stat. §69.80, i.e. office expenses,