(a) Subject to any specific limitation set forth in a gift instrument or in law other than this part 11, 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:
Selecting an agent;
Establishing the scope and terms of the delegation, consistent with the purposes ofthe institution and the institutional fund; and
Periodically reviewing the agent's actions in order to monitor the agent's performanceand compliance with the scope and terms of the delegation.
In performing a delegated function, an agent owes a duty to the institution to exercisereasonable care to comply with the scope and terms of the delegation.
An institution that complies with subsection (a) of this section is not liable for thedecisions or actions of an agent to which the function was delegated.
By accepting delegation of a management or investment function from an institutionthat 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.
An institution may delegate management and investment functions to its committees,officers, or employees as authorized by law of this state other than this part 11.
Source: L. 2008: Entire part R&RE, p. 563, § 1, effective September 1.
Editor's note: This section is similar to former § 15-1-1107 as it existed prior to 2008.