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.
59-21-05. Release or modification of restrictions on management, investment, or purpose. 1. If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution. 2. The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general of the application. The court shall provide the attorney general with the opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor's probable intention. 3. If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the court shall provide the attorney general with the opportunity to be heard. 4. If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable,
impossible to achieve, or wasteful, the institution, sixty days after notification to the attorney general, may release or modify the restriction, in whole or part, if: a. The institutional fund subject to the restriction has a total value of less than twenty-five thousand dollars; b. More than twenty years have elapsed since the fund was established; and c. The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.