Sec. 45a-535d. Delegation of management and investment of institutional fund.
Sec. 45a-535d. Delegation of management and investment of institutional
fund. (a) Subject to any specific limitation set forth in a gift instrument or in law other
than sections 45a-535 to 45a-535i, inclusive, an institution may delegate to an external
agent the management and investment of an institutional fund to the extent that an
institution could prudently delegate under the circumstances. An institution shall act in
good faith, with the care that an ordinarily prudent person in a like position would
exercise under similar circumstances, in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes
of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to
exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) of this section is not liable for
the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the
courts of this state in all proceedings arising from or related to the delegation or the
performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers or employees as authorized by law other than sections 45a-535 to 45a-535i, inclusive.
(P.A. 07-91, S. 32.)