26-45.3 - Prudent investor rule. - Virginia Statutes

§ 26-45.3. Prudent investor rule.

A. Except as otherwise provided in subsection B, §§ 26-40 and 26-40.01, atrustee who invests and manages trust assets owes a duty to the beneficiariesof the trust to comply with the prudent investor rule set forth in this Act.

B. The prudent investor rule, a default rule, may be expanded, restricted,eliminated, or otherwise altered by the provisions of a trust. A generalauthorization in a controlling document authorizing a trustee to invest insuch assets as the trustee, in his sole discretion, may deem best, or otherlanguage purporting to expand the trustees investment powers, shall not beconstrued to waive the rule of subsection A unless the controlling documentexpressly manifests an intention that it be waived (i) by reference to"prudent man" or "prudent investor" rule, (ii) by reference to power ofthe trustee to make "speculative" investments, (iii) by an expressauthorization to acquire or retain a specific asset or type of asset such asa closely held business, or (iv) by other language synonymous with (i), (ii)or (iii). A trustee shall not be liable to a beneficiary for the trustee'sgood faith reliance on a waiver of the rule of subsection A.

(1999, c. 772.)