Section 18-1907 - Trust management and administration; fiduciary.
§ 18-1907. Trust management and administration; fiduciary.
(a) "Fiduciary" defined.- In this section, "fiduciary" means:
(1) A member of the Board; or
(2) An employee of the Program or the Trust who exercises any discretionary authority or control over:
(i) The management or administration of the Trust; or
(ii) The management or disposition of the assets of the Trust.
(b) Responsibilities of fiduciary.- A fiduciary shall discharge the fiduciary's duties with respect to the Trust:
(1) Solely in the interest of the participants;
(2) For the exclusive purposes of providing benefits to the participants and providing reasonable expenses of administering the Trust;
(3) With the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims;
(4) By diversifying the investments of the Trust so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so;
(5) In accordance with the laws governing the Trust; and
(6) In accordance with the documents and instruments governing the Trust to the extent that the documents and instruments are consistent with this subtitle.
(c) Prohibited activity by fiduciary.- In exercising authority, control, or discretion with respect to the Trust, a fiduciary may not:
(1) Use the assets of the Trust for the fiduciary's own interest or account;
(2) Act in a transaction involving the Trust on behalf of a person, or represent a person, if the interests of the person are adverse to the interests of the Trust or the interests of participants;
(3) Receive any consideration for the fiduciary's own account from a person dealing with the Trust in connection with a transaction involving the assets of the Trust; or
(4) Become an endorser or surety or, in any manner, an obligor, for money lent to or borrowed from the Board.
[1997, chs. 110, 111; 2000, ch. 494; 2003, chs. 381, 382.]