§ 36E-5. Delegation of management and investment functions.
§ 36E‑5. Delegation ofmanagement and investment functions.
(a) Subject to anyspecific limitation set forth in a gift instrument or in law other than thisChapter, an institution may delegate to an external agent the management andinvestment of an institutional fund to the extent that an institution couldprudently delegate under the circumstances. An institution shall act in goodfaith, with the care that an ordinarily prudent person in a like position wouldexercise under similar circumstances, in:
(1) Selecting an agent;
(2) Establishing thescope and terms of the delegation, consistent with the purposes of theinstitution and the institutional fund; and
(3) Periodicallyreviewing the agent's actions in order to monitor the agent's performance andcompliance with the scope and terms of the delegation.
(b) In performing adelegated function, an agent owes a duty to the institution to exercisereasonable care to comply with the scope and terms of the delegation.
(c) An institution thatcomplies with subsection (a) of this section is not liable for the decisions oractions of an agent to which the function was delegated.
(d) By acceptingdelegation of a management or investment function from an institution that issubject to the laws of this State, an agent submits to the jurisdiction of thecourts of this State in all proceedings arising from or related to thedelegation or the performance of the delegated function.
(e) An institution maydelegate management and investment functions to its committees, officers, oremployees as authorized by law of this State other than this Chapter. (1985, c. 98, s. 1; 2009‑8,s. 2.)