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273.615 Delegation of management and investment functions.
(1)
(2)
(3)
(4)
(5)
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.
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.
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.
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.
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.
Effective:July 15, 2010
History: Created 2010 Ky. Acts ch. 34, sec. 4, effective July 15, 2010.
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