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Section 18505 Of Part 7. Uniform Prudent Management Of Institutional Funds Act From California Probate Code >> Division 9. >> Part 7.
18505
. (a) Subject to any specific limitation set forth in a gift
instrument or in law other than this part, an institution may
delegate to an external agent the management and investment of an
institutional fund to the extent that an institution could prudently
delegate under the circumstances. An institution shall act in good
faith, with the care that an ordinarily prudent person in a like
position would exercise under similar circumstances, in all of the
following:
(1) Selecting an agent.
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund.
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subdivision (a) is not liable for the decisions or actions of an agent to which the function was delegated except to the extent a trustee would be liable for those actions or decisions under Sections 16052 and 16401.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this part.
(1) Selecting an agent.
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund.
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subdivision (a) is not liable for the decisions or actions of an agent to which the function was delegated except to the extent a trustee would be liable for those actions or decisions under Sections 16052 and 16401.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this part.
