402.136. Delegation of management and investment, when--requirements of the institution.
Delegation of management and investment, when--requirements of theinstitution.
402.136. 1. Subject to any specific limitation set forth in a giftinstrument or law not within sections 402.130 to 402.148, an institutionmay delegate to an external agent the management and investment of aninstitutional fund to the extent that an institution could prudentlydelegate under the circumstances. An institution shall act in good faithwith the care that an ordinarily prudent person in a like position wouldexercise under similar circumstances in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation consistentwith the purposes of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitorthe agent's performance and compliance with the scope and terms of thedelegation.
2. In performing a delegated function, an agent owes a duty to theinstitution to exercise reasonable care to comply with the scope and termsof the delegation.
3. An institution that complies with subsection 1 of this section isnot liable for the decisions or actions of an agent to which the functionwas delegated.
4. By accepting delegation of a management or investment functionfrom an institution that is subject to the laws of this state, an agentsubmits to the jurisdiction of the courts of this state in all proceedingsarising from or related to the delegation or the performance of thedelegated function.
5. An institution may delegate management and investment functions toits committees, officers, or employees as authorized by law other thanprovided for in sections 402.130 to 402.148.
(L. 2009 H.B. 239)