Code of Federal Regulations Title 42. Public Health § 42.137.101 What standard applies to a Self–Governance Tribe's management of funds paid under a compact or funding agreement?

A Self–Governance Tribe is under a duty to invest and manage the funds as a prudent investor would, in light of the purpose, terms, distribution requirements, and provisions in the compact or funding agreement and Title V. This duty requires the exercise of reasonable care, skill, and caution, and is to be applied to investments not in isolation but in the context of the investment portfolio and as a part of an overall investment strategy, which should incorporate risk and return objectives reasonably suitable to the Self–Governance Tribe. In making and implementing investment decisions, the Self–Governance Tribe has a duty to diversify the investments unless, under the circumstances, it is prudent not to do so. In addition, the Self–Governance Tribe must: