§ 59-21-04 — Management and investment functions - Delegation

1. Except as otherwise provided in a gift instrument or by law other than this chapter, 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:
a. Selecting an agent;
b. Establishing the scope and terms of the delegation, consistent with the purposes
of the institution and the institutional fund; and
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.