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§ 15-404. Delegation of management and investment of institutional fund

West's Annotated Code of MarylandEstates and TrustsEffective: April 14, 2009

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 15. Fiduciaries (Refs & Annos)
Subtitle 4. Maryland Uniform Prudent Management of Institutional Funds Act (Refs & Annos)
Effective: April 14, 2009
MD Code, Estates and Trusts, § 15-404
§ 15-404. Delegation of management and investment of institutional fund
Currentness
In general
(a)(1) Subject to any specific limitation set forth in a gift instrument or in law other than this subtitle, 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.
(2) An institution shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision, in:
(i) Selecting an agent;
(ii) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(iii) Periodically reviewing the actions of the agent in order to monitor the performance and compliance of the agent with the scope and terms of the delegation.
Duties of agent
(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.
Standard established by § 15-402
(c) The standard established by § 15-402(b) of this subtitle is not limited or extinguished by the appointment of an external agent.
Jurisdiction of the courts of the State
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of the State, an agent submits to the jurisdiction of the courts of the State in all proceedings arising from or related to the delegation or the performance of the delegated function.
Delegation to institution
(e) An institution may delegate management and investment functions to the committees, officers, or employees of the institution as authorized by law other than this subtitle.

Credits

Added by Acts 2009, c. 134, § 1, eff. April 14, 2009.
MD Code, Estates and Trusts, § 15-404, MD EST & TRST § 15-404
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document