58-3615. Delegation of management and investment functions.
58-3615
58-3615. Delegation of management and investmentfunctions.(a) Subject to any specific limitation set forth in a giftinstrument or in law other than this act, an institution may delegate to anexternal agent the management and investment of an institutional fund to theextent that an institution could prudently delegate under the circumstances. Aninstitution shall act in good faith, with the care that an ordinarily prudentperson 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 thepurposes of the institution and the institutional fund; and
(3) periodically reviewing the agent's actions in order to monitor theagent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to theinstitution to exercise reasonable care to comply with the scope and terms ofthe delegation.
(c) An institution that complies with subsection (a) is not liable for thedecisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from aninstitution that is subject to the laws of this state, an agent submits to thejurisdiction of the courts of this state in all proceedings arising from orrelated to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to itscommittees, officers or employees as authorized by law of this state, otherthanthis act.
History: L. 2008, ch. 20, § 5; July 1.