58-24a09.Delegation of investment and managementfunctions.(a) A fiduciary may delegate investment and management functionsthat a prudent fiduciary of comparable skills could properly delegate under thecircumstances.For a fiduciary to properly delegate investment functions under thissubsection, the fiduciary shall:
(1) Exercise reasonable care, skill and caution in selection of theinvestment agent, in establishing the scope and specific terms of anydelegation and in periodically reviewing the investment agent's actions inorder to monitor overall performance and compliance with the scope and specificterms of the delegation;
(2) conduct an inquiry into the experience, performance history, errors andomissions coverage, professionallicensing or registration, if any, and financial stability of the investmentagent; and
(3) if a trust, send written notice of such trust's intention to begindelegating investment functions under this section to each beneficiary eligibleto receive income from the trust on the date of the initial delegation at least30 days before such delegation. This notice shall thereafter, until or unlesseach beneficiary eligible to receive income from the trust at the time arenotified to the contrary, authorize the fiduciary to delegate investmentfunctions pursuant to this section.
(b) In performing a delegated function,an investment agentshall be subject to the same standards that are applicable to the fiduciary.
(c) An investment agent shall be liable to each beneficiary of the trust andto the designated fiduciary to the same extent as if the investment agent werea designated fiduciary in relation to the exercise or nonexercise of theinvestment function.
(d) A fiduciary who complies with the requirements of subsection (a) is notliable to the beneficiaries or to the trust for the decisions or actions of theagent to whom the function was delegated.
(e) By accepting the delegation of a trust function from the fiduciary of atrust that is subject to the law of this state, an agent submits to thejurisdiction of the courts of this state.
58-24a09.Delegation of investment and managementfunctions.(a) A fiduciary may delegate investment and management functionsthat a prudent fiduciary of comparable skills could properly delegate under thecircumstances.For a fiduciary to properly delegate investment functions under thissubsection, the fiduciary shall:
(1) Exercise reasonable care, skill and caution in selection of theinvestment agent, in establishing the scope and specific terms of anydelegation and in periodically reviewing the investment agent's actions inorder to monitor overall performance and compliance with the scope and specificterms of the delegation;
(2) conduct an inquiry into the experience, performance history, errors andomissions coverage, professionallicensing or registration, if any, and financial stability of the investmentagent; and
(3) if a trust, send written notice of such trust's intention to begindelegating investment functions under this section to each beneficiary eligibleto receive income from the trust on the date of the initial delegation at least30 days before such delegation. This notice shall thereafter, until or unlesseach beneficiary eligible to receive income from the trust at the time arenotified to the contrary, authorize the fiduciary to delegate investmentfunctions pursuant to this section.
(b) In performing a delegated function,an investment agentshall be subject to the same standards that are applicable to the fiduciary.
(c) An investment agent shall be liable to each beneficiary of the trust andto the designated fiduciary to the same extent as if the investment agent werea designated fiduciary in relation to the exercise or nonexercise of theinvestment function.
(d) A fiduciary who complies with the requirements of subsection (a) is notliable to the beneficiaries or to the trust for the decisions or actions of theagent to whom the function was delegated.
(e) By accepting the delegation of a trust function from the fiduciary of atrust that is subject to the law of this state, an agent submits to thejurisdiction of the courts of this state.
58-24a09.Delegation of investment and managementfunctions.(a) A fiduciary may delegate investment and management functionsthat a prudent fiduciary of comparable skills could properly delegate under thecircumstances.For a fiduciary to properly delegate investment functions under thissubsection, the fiduciary shall:
(1) Exercise reasonable care, skill and caution in selection of theinvestment agent, in establishing the scope and specific terms of anydelegation and in periodically reviewing the investment agent's actions inorder to monitor overall performance and compliance with the scope and specificterms of the delegation;
(2) conduct an inquiry into the experience, performance history, errors andomissions coverage, professionallicensing or registration, if any, and financial stability of the investmentagent; and
(3) if a trust, send written notice of such trust's intention to begindelegating investment functions under this section to each beneficiary eligibleto receive income from the trust on the date of the initial delegation at least30 days before such delegation. This notice shall thereafter, until or unlesseach beneficiary eligible to receive income from the trust at the time arenotified to the contrary, authorize the fiduciary to delegate investmentfunctions pursuant to this section.
(b) In performing a delegated function,an investment agentshall be subject to the same standards that are applicable to the fiduciary.
(c) An investment agent shall be liable to each beneficiary of the trust andto the designated fiduciary to the same extent as if the investment agent werea designated fiduciary in relation to the exercise or nonexercise of theinvestment function.
(d) A fiduciary who complies with the requirements of subsection (a) is notliable to the beneficiaries or to the trust for the decisions or actions of theagent to whom the function was delegated.
(e) By accepting the delegation of a trust function from the fiduciary of atrust that is subject to the law of this state, an agent submits to thejurisdiction of the courts of this state.
