273.615 Delegation of management and investment functions.

257 words·~1 min read·/ky/chapter-273/273-615

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Subject to any specific limitation set forth in a gift instrument or in law other than

KRS 273.600 to 273.645, 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:

(a)Selecting an agent;

(b)Establishing the scope and terms of the delegation, consistent with the

purposes of the institution and the institutional fund; and

(c)Periodically reviewing the agent's actions in order to monitor the agent's

performance and compliance with the scope and terms of the delegation.

(2)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.

(3)An institution that complies with subsection

(1)of this section is not liable for the

decisions or actions of an agent to which the function was delegated.

(4)By accepting delegation of a management or investment function from an institution

that is subject to the laws of the Commonwealth, an agent submits to the

jurisdiction of the courts of the Commonwealth in all proceedings arising from or

related to the delegation or the performance of the delegated function.

(5)An institution may delegate management and investment functions to its

committees, officers, or employees as authorized by law of the Commonwealth

other than KRS 273.600 to 273.645.