[§517E-5]  Delegation of management and
investment functions.  (a)  Subject to any specific limitation set forth in
a gift instrument or otherwise provided by law, 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:



(1)  Selecting an agent;



(2)  Establishing the scope and terms of the
delegation consistent with the purposes of the institution and the
institutional fund; and



(3)  Periodically reviewing the agent's actions 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 subsection
(a) shall not be liable for the decisions or actions of an agent to which the
function was delegated.



(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
the laws of this State. [L 2009, c 135, pt of §1]