Section XI-6: Investment of permanent common school and other educational funds.

    A.  The permanent common school and other educational funds may
be invested in first mortgages upon good and improved farm lands
within the state (and in no case shall more than fifty per centum
(50%) of the reasonable valuation of the lands without improvements
be loaned on any tract) and any other investments as authorized by
law.
    B.  The Commissioners of the Land Office shall be responsible for
the investment of the permanent common school and other educational
funds, and public building funds solely in the best interests of the
beneficiaries and:
    1.  For the exclusive purpose of providing maximum benefits to
current and future beneficiaries, and defraying reasonable expenses
of administering the trust funds;
    2.  With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
enterprise of a like character and like aim would use;
    3.  By diversifying the investments of the trust funds so as to
minimize the risk of large losses; and
    4.  In accordance with the law, documents and instruments
governing the administration and investment of the permanent common
school and other educational funds and public building funds.
    C.  The Legislature shall provide by law conditions upon which
the permanent common school fund, other educational funds and public
building funds may be loaned or invested and shall do all things
necessary for the safety of the funds and permanency of the
investment.