Section 45-7-602 - Prudent investor rule. - New Mexico Statutes

45-7-602. Prudent investor rule.

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 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.