51-8-401 - Delegating management and investment functions. - Utah Statutes

51-8-401. Delegating management and investment functions.
(1) (a) Subject to any specific limitation set forth in a gift instrument or in law other thanthis chapter, an institution may delegate to an external agent the management and investment ofan institutional fund to the extent that an institution could prudently delegate under thecircumstances.
(b) An institution shall act in good faith, with the care that an ordinarily prudent personin a like position would exercise under similar circumstances, in:
(i) selecting an agent;
(ii) establishing the scope and terms of the delegation, consistent with the purposes of theinstitution and the institutional fund; and
(iii) periodically reviewing the agent's actions in order to monitor the agent'sperformance 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 exercisereasonable care to comply with the scope and terms of the delegation.
(3) An institution that complies with Subsection (1) is not liable for the decisions oractions of an agent to which the function was delegated.
(4) By accepting delegation of a management or investment function from an institutionthat is subject to the laws of this state, an agent submits to the jurisdiction of the courts of thisstate in all proceedings arising from or related to the delegation or the performance of thedelegated function.
(5) An institution may delegate management and investment functions to its committees,officers, or employees as authorized by law other than this chapter.

Enacted by Chapter 59, 2007 General Session