Ch. 110 1997 LAWS OF MARYLAND

(5) THE INCOME PRODUCED BY EACH INVESTMENT MANAGER.

18-1908.

(A) IN THIS SECTION, "FIDUCIARY" MEANS:

(1) A MEMBER OF THE MARYLAND HIGHER EDUCATION INVESTMENT
PROGRAM BOARD: OR

(2) AN EMPLOYEE OF THE MARYLAND HIGHER EDUCATION
INVESTMENT PROGRAM WHO EXERCISES ANY DISCRETIONARY AUTHORITY OR

CONTROL OVER:

(I) THE MANAGEMENT OR ADMINISTRATION OF THE PROGRAM;

OR

(II) THE MANAGEMENT OR DISPOSITION OF THE ASSETS OF THE

PROGRAM.

(B) A FIDUCIARY SHALL DISCHARGE THE FIDUCIARY'S DUTIES WITH
RESPECT TO THE PROGRAM:

(1) SOLELY IN THE INTEREST OF THE PARTICIPANTS:

(2) FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO THE
PARTICIPANTS AND PROVIDING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;

(3) 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 WITH LIKE AIMS: AND

(4) BY DIVERSIFYING THE INVESTMENTS OF THE PROGRAM SO AS TO
MINIMIZE THE RISK OF LARGE LOSSES. UNLESS UNDER THE CIRCUMSTANCES IT IS
CLEARLY PRUDENT NOT TO DO SO:

(5) IN ACCORDANCE WITH THE LAWS GOVERNING THE PROGRAM; AND

(6) IN ACCORDANCE WITH THE DOCUMENTS AND INSTRUMENTS
GOVERNING THE PROGRAM TO THE EXTENT THAT THE DOCUMENTS AND
INSTRUMENTS ARE CONSISTENT WITH THIS SUBTITLE.

(C) IN EXERCISING AUTHORITY, CONTROL OR DISCRETION WITH RESPECT
TO THE PROGRAM, A FIDUCIARY MAY NOT:

(1) USE THE ASSETS OF THE PROGRAM FOR THE FIDUCIARY'S OWN
INTEREST OR ACCOUNT;

(2) ACT IN A TRANSACTION INVOLVING THE PROGRAM ON BEHALF OF
A PERSON, OR REPRESENT A PERSON, IF THE INTERESTS OF THE PERSON ARE
ADVERSE TO THE INTERESTS OF THE PROGRAM OR THE INTEREST OF
PARTICIPANTS;

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