KRS 286.3-275: Limits on liability of bank or trust company acting as fiduciary.

(1) When an instrument, under which a bank empowered to act as a fiduciary or trust

company acts, reserves in the grantor, or vests in an advisory or investment

committee or in one (1) or more other persons, any power, including, but not

limited to, the author ity to direct the acquisition, disposition, or retention of any

investment or the power to authorize any act that the bank or trust company may

propose, the fiduciary is not liable, either individually or as a fiduciary, for either of

the following:

(a) Any loss that results from compliance with an authorized direction of the

grantor, committee, person, or persons; or

(b) Any loss that results from a failure to take any action proposed by the bank or

trust company that requires the prior authorization of th e grantor, committee,

person, or persons if the bank or trust company timely sought but failed to

obtain that authorization.

(2) The bank or trust company referred to in subsection (1) of this section is relieved

from any obligation to perform investment r eviews and make recommendations

with respect to any investments to the extent the grantor, an advisory or investment

committee, or one (1) or more other persons have authority to direct the acquisition,

disposition, or retention of any investment.

(3) This section shall not apply to the extent that the instrument, under which the bank

or trust company referred to in subsection (1) of this section acts, contains

provisions that are inconsistent with this section.