Ch. 6

1994 LAWS OF MARYLAND

21-204. DUTIES AND RESPONSIBILITIES OF TRUSTEES.

(A)     IN GENERAL.

(1)      EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (C) OF THIS
SECTION, IN EXERCISING THE STANDARDS SET FORTH IN § 21-203 OF THIS SUBTITLE:

(I)       THE TRUSTEES JOINTLY SHALL MANAGE AND CONTROL THE
ASSETS OF THE SEVERAL SYSTEMS; AND

(II)     EACH TRUSTEE OF THE SEVERAL SYSTEMS, WHEN ACTING AS. A
FIDUCIARY, SHALL USE REASONABLE CARE TO. PREVENT ANOTHER TRUSTEE FROM
COMMITTING A BREACH.                                     

(2)      PARAGRAPH (1) OF THIS SUBSECTION DOES NOT PRECLUDE ANY
AGREEMENT THAT ALLOCATES SPECIFIC RESPONSIBILITIES, OBLIGATIONS, OR
DUTIES AMONG THE TRUSTEES.

(B)     DESIGNATION OR ALLOCATION — IN GENERAL.
THE BOARD OF TRUSTEES MAY:

(1)      ALLOCATE THE RESPONSIBILITIES OF THE FIDUCIARIES AMONG
THE FIDUCIARIES; AND

(2)      DESIGNATE ANY OTHER PERSON TO CARRY OUT THE
RESPONSIBILITIES OF A FIDUCIARY.

.(C) SAME — LIABILITY.

(1)      IF THE BOARD. OF TRUSTEES MAKES AN ALLOCATION OR
DESIGNATION TO A PERSON UNDER SUBSECTION (B) OF THIS SECTION, THE BOARD
OF TRUSTEES IS NOT LIABLE FOR AN ACT OR OMISSION OF THAT PERSON IN
CARRYING OUT THE RESPONSIBILITY, EXCEPT TO THE EXTENT THAT THE BOARD
OF TRUSTEES VIOLATES § 21-203 OF THIS SUBTITLE WITH RESPECT TO:

(I)       THE ALLOCATION OR DESIGNATION;

(II)     THE ESTABLISHMENT OR IMPLEMENTATION OF A PROCEDURE
TO. ALLOCATE OR DESIGNATE; OR

(III)    THE CONTINUANCE OR REVIEW OF THE ALLOCATION OR
DESIGNATION.

(2)      EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (1) OF THIS
SUBSECTION, A TRUSTEE TO WHOM CERTAIN RESPONSIBILITIES, OBLIGATIONS, OR
DUTIES HAVE NOT BEEN ALLOCATED IS NOT LIABLE, EITHER INDIVIDUALLY OR AS
A TRUSTEE, FOR ANY LOSS RESULTING TO THE SEVERAL SYSTEMS ARISING FROM
AN ACT OR OMISSION OF ANOTHER PERSON TO WHOM THE RESPONSIBILITIES,
OBLIGATIONS, OR DUTIES HAVE BEEN ALLOCATED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 1-204.

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