Ch. 6                                            1994 LAWS OF MARYLAND

21-206. LIABILITY OF FIDUCIARY FOR BREACH OF DUTY.

(A)     LIABILITY.

SUBJECT TO § 21-207 OF THIS SUBTITLE, A FIDUCIARY WHO BREACHES ANY OF
THE RESPONSIBILITIES, OBLIGATIONS, OR DUTIES IMPOSED ON A FIDUCIARY BY
THIS SUBTITLE:

(1)      IS PERSONALLY LIABLE TO THE SEVERAL SYSTEMS FOR ANY LOSSES
TO THE SEVERAL SYSTEMS RESULTING FROM A BREACH;

(2)      SHALL RESTORE TO THE SEVERAL SYSTEMS ANY PROFITS OF THE
FIDUCIARY MADE THROUGH USE OF ASSETS OF THE SEVERAL SYSTEMS BY THE
FIDUCIARY; AND

(3)      IS SUBJECT TO ANY EQUITABLE OR REMEDIAL RELIEF, INCLUDING
REMOVAL OF THE FIDUCIARY, THAT A COURT CONSIDERS APPROPRIATE.

(B)     LIMITATION ON LIABILITY.

A FIDUCIARY IS NOT LIABLE WITH RESPECT TO A BREACH OF FIDUCIARY
DUTY UNDER THIS SUBTITLE IF THE BREACH WAS COMMITTED:

(1)      BEFORE THE FIDUCIARY BECAME A FIDUCIARY; OR .

(2)      AFTER THE FIDUCIARY CEASED TO BE A FIDUCIARY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 1-206(b) and the first sentence of (a).

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

21-207. INDEMNIFICATION OF FIDUCIARIES.

(A)     IN GENERAL.

SUBJECT TO THE PROVISIONS OF THIS SECTION, THE STATE SHALL INDEMNIFY
A FIDUCIARY WHO IS, OR IS THREATENED TO BE MADE, A PARTY TO AN ACTION OR
PROCEEDING, INCLUDING AN ADMINISTRATIVE OR INVESTIGATIVE PROCEEDING,
BY REASON OF THE FIDUCIARY'S SERVICE AS A FIDUCIARY.

(B)      STANDARDS FOR INDEMNIFICATION.

(1) IN THIS SUBSECTION "EXPENSES" INCLUDE:

(I)       REASONABLE ATTORNEY'S FEES;

(II)     JUDGMENTS;

(III)    FINES; AND

(IV)    OTHER EXPENSES THAT WERE ACTUALLY AND REASONABLY
INCURRED BY THE FIDUCIARY IN CONNECTION WITH THE ACTION OR PROCEEDING.

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