Rhode Island § 18-12.1-5 § 18-12.1-5. Delegation of management and investment functions.

Rhode Island Statutes

§ 18-12.1-5 — § 18-12.1-5. Delegation of management and investment functions.

Rhode Island § 18-12.1-5

Title 18Fiduciaries

Ch. 18-12.1Uniform Prudent Management of Institutional Funds Act

This text of Rhode Island § 18-12.1-5 (§ 18-12.1-5. Delegation of management and investment functions.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 18-12.1-5 (2026).

Text

§ 18-12.1-5. Delegation of management and investment functions.
(a) Subject to any specific limitation set forth in a gift instrument or in 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:
         
(1) Selecting an agent;
         
(2) Establishing the scope a

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§ 18-12.1-5. Delegation of management and investment functions.

(a) Subject to any specific limitation set forth in a gift instrument or in 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:

(1) Selecting an agent;

(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and

(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance 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) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.

(d) 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.

(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.