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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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