§ 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.