§ 59-16.2-06 — Duty and liability of directing party

North Dakota § 59-16.2-06

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-16.2: Directed Trustees

Text

1. A directing party is a fiduciary of the trust subject to the same duties and standards
applicable to a trustee of a trust as provided by applicable law unless the governing
instrument provides otherwise. However, the governing instrument may not relieve or
exonerate a directing party from the duty to act or withhold acting as the directing party
in good faith reasonably believes is in the best interests of the trust.
2. Each directing party must keep the excluded fiduciary and any other directing party
reasonably informed regarding the administration of the trust with respect to any
specific duty or function being performed by the directing party to the extent the duty or
function would normally be performed by the excluded fiduciary or to the extent
providing the information to the excluded fiduciary or other directing party is
reasonably necessary for the excluded fiduciary or other directing party to perform its
duties. The directing party shall provide the information reasonably requested by the
excluded fiduciary or other directing party.
3. Neither the performance nor the failure to perform of a directing party's duty to inform
as provided in this section affects the limitation on the liability of the excluded fiduciary
as provided in this section.
4. The directing party may be made a party to an action or proceeding if issues relate to
a decision or action of the directing party, even if investment advisory agreements or
other related agreement provide otherwise.