Louisiana § RS 9:2337.5 - Delegation of management and investment functions
Full text of Louisiana Louisiana Civil Code § RS 9:2337.5 — Delegation of management and investment functions, with citation guidance and answers to common questions.
§ RS 9:2337.5. Delegation of management and investment functions
A. Subject to any specific limitation set forth in a gift instrument or in law other than this Part, 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 taking any of the following steps:
(1) Selecting an agent.
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund.
(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 of this Section 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 Part.
Added by Acts 1976, No. 410, §1; Acts 2010, No. 168, §1, eff. July 1, 2010.
Source: official Louisiana text · Last verified 2026-08-27
Frequently Asked Questions About Louisiana § RS 9:2337.5
What does Louisiana Civil Code § RS 9:2337.5 cover?
Section RS 9:2337.5 ("Delegation of management and investment functions") is part of the Louisiana Civil Code, the codified statutory law of Louisiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Louisiana § RS 9:2337.5?
A common citation format is "Louisiana Civil Code § RS 9:2337.5" (Louisiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Louisiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Louisiana official source linked on this page or consult a licensed Louisiana attorney.
How does Louisiana § RS 9:2337.5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Louisiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Louisiana.