§ 18-15-9 - Delegation of investment and management functions. - Rhode Island Statutes

SECTION 18-15-9

   § 18-15-9  Delegation of investment andmanagement functions. – (a) A trustee may delegate investment and management functions that a prudenttrustee of comparable skills could properly delegate under the circumstances.The trustee shall exercise reasonable care, skill, and caution in:

   (1) Selecting an agent;

   (2) Establishing the scope and terms of the delegation,consistent with the purposes and terms of the trust; and

   (3) Periodically reviewing the agent's actions in order tomonitor the agent's performance and compliance with the terms of the delegation.

   (b) In performing a delegated function, an agent owes a dutyto the trust to exercise reasonable care to comply with the terms of thedelegation.

   (c) A trustee who complies with the requirements ofsubsection (a) of this section is not liable to the beneficiaries or to thetrust for the decisions or actions of the agent to whom the function wasdelegated.

   (d) By accepting the delegation of a trust function from thetrustee of a trust that is subject to the law of this state, an agent submitsto the jurisdiction of the courts of this state.