N.Y. Not-for-Profit Corporation Law § 514: Delegation of investment management

§ 514. Delegation of investment management.

(a) Except as otherwise provided by the applicable gift instrument as

defined in section 551 (Definitions), the governing board may delegate

to its committees, officers or employees of the corporation or the fund

the authority to act in place of the governing board in investment and

reinvestment of institutional funds as defined in section 551

(Definitions). Each contract, if any, pursuant to which authority is so

delegated shall provide that it may be terminated by the governing board

at any time, without penalty, upon not more than sixty days' notice.

Section 554 (Delegation of management and investment functions) shall

govern external delegation.

(b) The governing board shall exercise the standard of care required

by section 717 (Duty of directors and officers) in the selection of

persons to whom authority is delegated or with whom contracts are made

under paragraph (a) of this section and in the continuation or

termination of such delegation or contracts. The governing board shall

be relieved of all liability for the investment and reinvestment of

institutional funds by, and for the other acts or omissions of, persons

to whom authority is so delegated or with whom contracts are so made.