67-19d-302. State treasurer to follow "prudent investor" rule -- Standard of care.

176 words·~1 min read·/ut/title-67/chapter-19d/67-19d-302

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

(1)The state treasurer shall invest and manage the trust fund assets as a prudent investor would, by:

(a)considering the purposes, terms, distribution requirements, and other circumstances of the trust fund; and

(b)exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.

(2)In determining whether or not the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:

(a)consider the state treasurer's actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; and

(b)evaluate the state treasurer's investment and management decisions respecting individual assets:

(i)not in isolation, but in the context of a trust fund portfolio as a whole; and

(ii)as a part of an overall investment strategy that has risk and return objectives reasonably suited to the trust fund.

Enacted by Chapter 99 , 2007 General Session