NY Not for Profit Corp L § 552 (2021)
2021 New York Laws NPC - Not-For-Profit Corporation Article 5-A - Prudent Management of Institutional Funds Act 552 - Standard of Conduct in Managing and Investing an Institutional Fund.

§ 552. Standard  of  conduct  in managing and investing an institutional fund.  (a) Subject to the intent of a donor expressed in a  gift  instrument, an  institution,  in managing and investing an institutional fund, shall consider the purposes  of  the  institution  and  the  purposes  of  the institutional fund.  (b)  In  addition to complying with the duty of loyalty imposed by law other than this  article,  each  person  responsible  for  managing  and investing an institutional fund shall manage and invest the fund in good faith  and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.  (c) In managing and investing an institutional  fund,  an  institution consistent with section 717 (Duty of Directors and Officers):  (1)  may  incur  only  costs  that  are  appropriate and reasonable in relation to the assets, the purposes of the institution, and the  skills available to the institution; and  (2)  shall  make  a  reasonable effort to verify facts relevant to the management and investment of the fund.  (d) An institution may  pool  two  or  more  institutional  funds  for purposes of management and investment.  (e)  Except  as otherwise provided by a gift instrument, the following rules apply:  (1) In managing and investing an  institutional  fund,  the  following factors,   if   relevant,  must  be  considered:  (A)  general  economic conditions; (B) the possible effect of inflation or deflation;  (C)  the expected   tax   consequences,   if  any,  of  investment  decisions  or strategies; (D) the role that each investment or course of action  plays within  the  overall  investment portfolio of the fund; (E) the expected total return from income and the appreciation of investments; (F)  other resources  of  the institution; (G) the needs of the institution and the fund to make distributions and to preserve capital; and (H)  an  asset's special  relationship  or  special value, if any, to the purposes of the institution.  (2) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the  institutional fund's  portfolio  of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably  suited to the fund and to the institution.  (3)  Except  as  otherwise provided by law other than this article, an institution may invest in any kind of property  or  type  of  investment consistent with this article.  (4) An institution shall diversify the investments of an institutional fund  unless  the  institution  prudently  determines  that,  because of special circumstances, the  purposes  of  the  fund  are  better  served without  diversification.  An institution shall review a decision not to diversify as frequently as circumstances require, but at least annually.  (5) Within a reasonable time after receiving property, an  institution shall   make  and  carry  out  decisions  concerning  the  retention  or disposition of the property or to rebalance a  portfolio,  in  order  to bring  the  institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as  necessary  to  meet other  circumstances  of  the  institution  and the requirements of this article.  (6) A person that has special skills or expertise, or is  selected  in reliance  upon  the  person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.  (f) Each institution shall adopt a written investment  policy  setting forth  guidelines  on  investments  and  delegation  of  management  and investment functions in accord with the standards of this article.