514 - Delegation of investment management.

§ 514. Delegation of investment management.    (a)  Except as otherwise provided by the applicable gift instrument as  defined in section 551 (Definitions), the governing board  may  delegate  to  its committees, officers or employees of the corporation or the fund  the authority to act in place of the governing board in  investment  and  reinvestment   of   institutional   funds  as  defined  in  section  551  (Definitions). Each contract, if any, pursuant to which authority is  so  delegated shall provide that it may be terminated by the governing board  at  any  time,  without  penalty, upon not more than sixty days' notice.  Section 554 (Delegation of management and  investment  functions)  shall  govern external delegation.    (b)  The  governing board shall exercise the standard of care required  by section 717 (Duty of directors and  officers)  in  the  selection  of  persons  to  whom authority is delegated or with whom contracts are made  under  paragraph  (a)  of  this  section  and  in  the  continuation  or  termination  of such delegation or contracts.  The governing board shall  be relieved of all liability for  the  investment  and  reinvestment  of  institutional  funds by, and for the other acts or omissions of, persons  to whom authority is so delegated or with whom contracts are so made.