55-268.15 - Delegation of management and investment functions. - Virginia Statutes

§ 55-268.15. Delegation of management and investment functions.

A. Subject to any specific limitation set forth in a gift instrument or inlaw other than this article, an institution may delegate to an external agentthe management and investment of an institutional fund to the extent that aninstitution could prudently delegate under the circumstances. An institutionshall act in good faith, with the care that an ordinarily prudent person in alike position would exercise under similar circumstances, in:

1. Selecting an agent;

2. Establishing the scope and terms of the delegation, consistent with thepurposes of the institution and the institutional fund; and

3. Periodically reviewing the agent's actions in order to monitor the agent'sperformance and compliance with the scope and terms of the delegation.

B. In performing a designated function, an agent owes a duty to theinstitution to exercise reasonable care to comply with the scope and terms ofthe delegation.

C. An institution that complies with subsection A is not liable for thedecisions or actions of an agent to which the function was delegated.

D. By accepting delegation of a management or investment function from aninstitution that is subject to the laws of the Commonwealth, an agent submitsto the jurisdiction of the courts of the Commonwealth in all proceedingsarising from or related to the delegation or the performance of the delegatedfunction.

E. An institution may delegate management and investment functions to itscommittees, officers, or employees as authorized by law of the Commonwealthother than this article.

(1973, c. 167, § 55-268.5; 2008, c. 184.)