§87D-6  Fiduciary duties; prohibited
transactions.  (a)  A fiduciary of the trust shall with respect to a plan
comply with all fiduciary duties imposed on fiduciaries under Title 29 United
States Code sections 1001-1191, as amended, and [related] regulations.



(b)  All fiduciaries of the trust shall
discharge their duties with respect to a plan solely in the interest of the
participants and beneficiaries and:



(1)  For the exclusive purpose of:



(A)  Providing benefits to participants and
their beneficiaries; and



(B)  Defraying reasonable expenses of
administering the plan;



(2)  With the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent person acting in a
similar capacity and familiar with those matters would use in the conduct of an
enterprise of a similar character and with like aims;



(3)  By diversifying the investments of the plan so as
to minimize the risk of large losses, unless, under the circumstances, it is
clearly prudent not to do so; and



(4)  In accordance with the documents and instruments
governing the plan insofar as such documents and instruments are consistent
with the provisions of this chapter.



(c)  In addition to any liability that a
fiduciary may have under this chapter, a fiduciary with respect to a plan shall
be liable for a breach of fiduciary responsibility of another fiduciary with
respect to the same plan in the following circumstances:



(1)  If the fiduciary participates knowingly in, or
knowingly undertakes to conceal, an act or omission of the other fiduciary,
knowing that act or omission is a breach;



(2)  If, by the fiduciary's failure to comply with
subsection (a) or (b), the fiduciary has enabled such other fiduciary to commit
breach; or



(3)  If the fiduciary has knowledge of the breach by
such other fiduciary, unless the fiduciary makes reasonable efforts under the
circumstances to remedy the breach.



If the assets of the plan are held by two or
more trustees, each shall use reasonable care to prevent a co-trustee from
committing a breach, and each shall be responsible for jointly managing and
controlling the assets of the plan.



(d)  A fiduciary shall not cause a plan to
engage in a transaction, if the fiduciary knows or should know that the
transaction constitutes a direct or indirect:



(1)  Sale or exchange, or leasing, of any property
between the plan and a party in interest;



(2)  Lending of money or other extension of credit
between the plan and a party in interest;



(3)  Furnishing of goods, services, or facilities
between the plan and a party in interest; or



(4)  Transfer to, or use by or for the benefit of, a
party in interest, of any assets of the plan.



(e)  A fiduciary shall not:



(1)  Deal with the assets of the plan in the
fiduciary's own interest or for the fiduciary's own account;



(2)  In the fiduciary's individual capacity or in any
other capacity act in any transaction involving the plan on behalf of a party
(or represent a party) whose interests are adverse to the interests of the plan
or the interests of its participants or beneficiaries; or



(3)  Receive any consideration for the fiduciary's own
personal account from any party dealing with the plan in connection with a
transaction involving the assets of the plan. [L 2005, c 245, pt of §2; am L
2006, c 38, §3]