4-5-27 Prudent-man standard required in investments.
Prudent-man standard required in investments.
Any investments under the provisions
of §§ 4-5-12 to 4-5-39, inclusive, shall be made with the exercise of that degree of judgment and
care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation but for investment, considering
the probable safety of their capital as well as the probable income to be derived.
Source: SL 1971, ch 27, § 21; SL 1985, ch 15, § 18.