WILLIAM DONALD SCHAEFER, Governor                               Ch. 6

21-202. PURPOSES OF ASSETS OF SYSTEM.

THE BOARD OF TRUSTEES SHALL HOLD THE ASSETS OF EACH OF THE SEVERAL
SYSTEMS FOR THE EXCLUSIVE PURPOSES OF PROVIDING:

(1)      BENEFITS TO PARTICIPANTS; AND

(2)      FOR REASONABLE EXPENSES OF ADMINISTRATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 1-202.

The reference to the "Board of Trustees" is added for clarity.

Defined terms: "Board of Trustees" § 20-101
"Participant" § 20-101
"Several systems" § 20-101

21-203. STANDARDS OF CARE.

A FIDUCIARY SHALL DISCHARGE THE FIDUCIARY'S DUTIES WITH RESPECT TO
THE SEVERAL SYSTEMS SOLELY IN THE INTEREST OF THE PARTICIPANTS AND AS
FOLLOWS:

(1)      FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO THE
PARTICIPANTS AND FOR REASONABLE EXPENSES OF ADMINISTERING THE SEVERAL

SYSTEMS;

(2)      WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER THE
CIRCUMSTANCES THEN PREVAILING, THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF
AN ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS;

(3)      BY DIVERSIFYING THE INVESTMENTS OF THE SEVERAL SYSTEMS SO
AS TO MINIMIZE THE RISK OF LARGE LOSSES, UNLESS UNDER THE CIRCUMSTANCES
IT IS CLEARLY PRUDENT NOT TO DO SO;

(4)      IN ACCORDANCE WITH THE LAWS GOVERNING THE SEVERAL
SYSTEMS; AND

(5)      IN ACCORDANCE WITH THE DOCUMENTS AND INSTRUMENTS
GOVERNING THE SEVERAL SYSTEMS TO THE EXTENT THAT THE DOCUMENTS AND
INSTRUMENTS ARE CONSISTENT WITH THIS SUBTITLE.

REVISOR'S NOTE: This section formerly was Art. 73B, § 1-203.

The only changes are in style.

Defined terms: "Fiduciary" § 21-201
"Participant" § 20-101
"Several systems" § 20-101

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