45-7-602. Prudent investor rule.
107 words·~1 min read·
/nm/chapter-45-uniform-probate-code/article-7-trust-administration/45-7-602A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Except as otherwise provided in Subsection B of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978].
B. The prudent investor rule, a default rule, may be expanded, restricted, eliminated or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.
History: 1978 Comp., § 45-7-602, enacted by Laws 1995, ch. 210, § 83.