Section 402.136

Title XXVI TRADE AND COMMERCE

Chapter 402

Effective - 28 Aug 2009   

  402.136.  Delegation of management and investment, when — requirements of the institution. — 1.  Subject to any specific limitation set forth in a gift instrument or law not within sections 402.130 to 402.148, 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:

  (1)  Selecting an agent;

  (2)  Establishing the scope and terms of the delegation consistent with the purposes of the institution and the institutional fund; and

  (3)  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 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.

  5.  An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law other than provided for in sections 402.130 to 402.148.

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(L. 2009 H.B. 239)