B. An executive agency is not eligible to receive funding from the trust unless the agency jointly undertakes a research proposal with another entity that is not an executive agency.

C. The foundation shall give preference to institutions, organizations or entities located and operated in the State.

D. Principal, or interest earned from principal, with special instructions from contributors must be awarded in accordance with the contributors' instructions.

E. All money in the trust not immediately required for payment, pursuant to the provisions of this chapter, must be invested by the Treasurer of State as authorized by section 138, except that the securities in which the trust money is invested must remain part of the trust until exchanged for other securities and the income from all investments must remain a part of the trust unless prohibited by federal law.

Sec. 54. 5 MRSA §13130, sub-§5, as enacted by PL 1989, c. 903, §6, is amended to read:

5. Report, amendment and termination of trust. The board foundation shall file a report as follows.

A. The board foundation shall report to the Legislature on a biennial basis concerning the activities of the trust. The report may be submitted as part of the research priorities statement required pursuant to section 13128, subsection 1.

B. In the event the board foundation determines that the provisions of the trust should be amended, the board foundation shall make appropriate recommendations to the Legislature in its biennial report.

C. The board foundation may recommend in its biennial report that the trust be terminated if termination is determined to be appropriate by unanimous vote of the board. In the event that the Legislature terminates the trust, the principal and operating funds are disbursed in a manner consistent with the purpose of the trust.