The standard of prudence to be used by authorized investment officers shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Authorized investment officers acting in accordance with written procedures and this subchapter and exercising due diligence shall be relieved of personal liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and necessary action is taken to control adverse developments.
(Prior Code, § 2-313)