26-45.10 - Delegation of investment and management functions.
§ 26-45.10. Delegation of investment and management functions.
A. A trustee may delegate investment and management functions that a prudenttrustee of comparable skills could properly delegate under the circumstances.The trustee shall exercise reasonable care, skill, and caution in:
1. Selecting an agent;
2. Establishing the scope and terms of the delegation, consistent with thepurposes and terms of the trust; and
3. Periodically reviewing the agent's actions in order to monitor the agent'sperformance and compliance with the terms of the delegation.
B. In performing a delegated function, an agent owes a duty to the trust toexercise reasonable care to comply with the terms of the delegation.
C. A trustee who complies with the requirements of subsection A is not liableto the beneficiaries or to the trust for the decisions or actions of theagent to whom the function was delegated.
D. By accepting the delegation of a trust function from the trustee of atrust that is subject to the law of this Commonwealth, an agent submits tothe jurisdiction of the courts of this Commonwealth.
(1999, c. 772.)