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

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

(1)  For the exclusive purpose of:

(A)  Providing benefits to participants andtheir beneficiaries; and

(B)  Defraying reasonable expenses ofadministering the plan;

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

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

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

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

(1)  If the fiduciary participates knowingly in, orknowingly 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 withsubsection (a) or (b), the fiduciary has enabled such other fiduciary to commitbreach; or

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

If the assets of the plan are held by two ormore trustees, each shall use reasonable care to prevent a co-trustee fromcommitting a breach, and each shall be responsible for jointly managing andcontrolling the assets of the plan.

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

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

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

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

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

(e)  A fiduciary shall not:

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

(2)  In the fiduciary's individual capacity or in anyother 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 planor the interests of its participants or beneficiaries; or

(3)  Receive any consideration for the fiduciary's ownpersonal account from any party dealing with the plan in connection with atransaction involving the assets of the plan. [L 2005, c 245, pt of §2; am L2006, c 38, §3]