Michigan § 451.925 Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees.

Michigan Statutes

§ 451.925 — Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees.

Michigan § 451.925

Ch. 451SECURITIES, REAL ESTATE, AND DEBT MANAGEMENT

Act 87 of 2009UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT (451.921-451.931)

This text of Michigan § 451.925 (Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees.) is published on Counsel Stack Legal Research, covering Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mich. Comp. Laws § 451.925 (2026).

Text

UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT (EXCERPT) Act 87 of 2009 451.925 Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees. Sec. 5.

(1)Subject to any specific limitation set forth in a gift instrument or in law other than this act, 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. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in doing any of the following:

(a)Selecting an agent.

(b)Establishing the scope and terms of the delegation, co

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UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT (EXCERPT) Act 87 of 2009 451.925 Management and investment; delegation to external agent; duty to exercise reasonable care; liability; delegation to committees, officers, or employees. Sec. 5. (1) Subject to any specific limitation set forth in a gift instrument or in law other than this act, 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. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in doing any of the following: (a) Selecting an agent. (b) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund. (c) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation. (2) 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. (3) An institution that complies with subsection (1) is not liable for the decisions or actions of an agent to which the function was delegated. (4) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function. (5) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this act.