(a)(1) Subject to any specific limitation set forth in a gift instrument or in law
other than this subtitle, an institution may delegate to an external agent the management
and investment of an institutional fund to the extent that an institution could prudently
delegate under the circumstances.
(2) An institution shall exercise ordinary business care and prudence under the facts
and circumstances prevailing at the time of the action or decision, in:
(i) Selecting an agent;
(ii) Establishing the scope and terms of the delegation, consistent with the purposes
of the institution and the institutional fund; and
(iii) Periodically reviewing the actions of the agent in order to monitor the performance
and compliance of the agent with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to
exercise reasonable care to comply with the scope and terms of the delegation.
(c) The standard established by § 15-402(b) of this subtitle is not limited or extinguished by the appointment of an external
(d) By accepting delegation of a management or investment function from an institution
that is subject to the laws of the State, an agent submits to the jurisdiction of
the courts of the State in all proceedings arising from or related to the delegation
or the performance of the delegated function.
(e) An institution may delegate management and investment functions to the committees,
officers, or employees of the institution as authorized by law other than this subtitle.
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