§ 5-2-201. Trust established – In general.

   (a)   Generally. The County establishes a trust, that is part of the System, for the benefit of the participants in the plans.

   (b)   Assets of System. The Board holds the assets of the System in trust for the benefit of the participants in the plans. The Board has legal title to all the assets of the System, but the Board may delegate some or all incidents of ownership as provided in this article.

   (c)   Assets of pensions funds. As of the effective date of Bill No. 88-96, the assets of each of the pension funds of the plans become part of the assets of the System.

   (d)   Investment of assets.

      (1)   The Board may invest the assets of the System or permit one or more investment managers to invest the assets of the System as provided in § 5-2-203, subject to any conditions that it has established in the investment policy adopted under § 5-2-202.

      (2)   If the assets of the System are invested through any combined, common, or commingled trust fund, the declaration of trust of that fund is adopted as part of the trust.

      (3)   The assets of the System may not be directly invested in any bonds, notes, or debt instruments issued by the County, any political subdivision within the County, any agency supported or financed wholly or partly by taxes levied by the County Council, or any agency supported by bond issues underwritten by the County, if the investment would be a prohibited transaction under the provisions of the Internal Revenue Code applicable to the System.

   (e)   Powers of Board. The Board has the power to do all acts that it considers necessary and exercise any and all powers of this article with respect to the management of the assets of the System. The Board's powers in connection with the management of the assets of the System include the power to:

      (1)   sell, exchange, convey, transfer, lease for any period, pledge, mortgage, grant options, contract with respect to, or otherwise encumber or dispose, at public or private sale, for cash or credit or both, any part of the assets of the System;

      (2)   vote, in person or by any proxy, at any election of any corporation in whose stock the assets of the System are invested, and exercise, personally or by a power of attorney, any right appurtenant to any investment held in the assets of the System; and give general or specific proxies or powers of attorney with or without power of substitution; and

      (3)   retain uninvested cash in an amount it considers prudent to pay benefits, expenses, and other payments.

   (f)   Commingled assets. The assets of the pension funds of the plans shall be commingled for investment purposes. For the commingled assets, the Board shall keep separate sets of records, one for each of the plans, that show: (1) the percent of participation of each pension fund; (2) the percentage of income, gains, and losses applicable to each pension fund; and (3) the total contributions and disbursements applicable to each pension fund. Disbursements from each pension fund shall be charged against that fund's portion of the assets of the System.

(1985 Code, Art. 7, § 2-201) (Bill No. 88-96; Bill No. 90-01)