prudent man rule

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prudent man rule

n. the requirement that a trustee, investment manager of pension funds, treasurer of a city or county, or any fiduciary (a trusted agent) must only invest funds entrusted to him/her as would a person of prudence, i.e. with discretion, care and intelligence. Thus solid "blue chip" securities, secured loans, federally guaranteed mortgages, treasury certificates, and other conservative investments providing a reasonable return are within the prudent man rule. Some states have statutes which list the types of investments allowable under the rule. Unfortunately, the rule is subjective, and some financial managers have put funds into speculative investments to achieve higher rates of return, which has resulted in bankruptcy and disaster as in the case of Orange County, California (1994). (See: fiduciary, trustee)

References in periodicals archive ?
Pantoja said the Philippines was known for supplying coffee to Europe when the country was still under the Spanish rule, but production later dwindled when coffee farms were converted to plantations of banana, pineapple, papaya, and rubber under the American rule.
This legislation makes it clear to the Chinese government and Communist Party that Huaweis attempt to abuse American rule of law will not be tolerated.
Some people may have forgotten that the observation of Independence Day originally fell on July 4 the day when the United States officially gave us our independence from American rule in 1946.
Here is a slice of history: On May 1, 1903, when the Philippines was under American rule, the first labor union called Union Obrero Democratia de Filipinas (UODF) gathered more than a hundred thousand workers and marched from Plaza Moriones in Tondo to Malacanang, demanding for fairer working conditions.
TheMassachusetts Wage Actprovides that an employee who "prevails" in an action to recover unpaid wages "shall be awarded the costs of the litigation and reasonable attorneys' fees." This "fee-shifting" provision is an exception to well-established "American Rule" under which each party bears his or her own attorneys' fees, win or lose.
taxes for the rest of his or her life due to an American rule.
I will always strive to preserve the constitution of the United States and the American rule of law.
Eberhard Faber tells the vivid story of how American rule forced New Orleans through a vast transition -- from the ordered colonial world of hierarchy and subordination to the fluid, unpredictable chaos of democratic capitalism.
Can you imagine the negative effect on access to justice if the American rule, where each party generally pays its own attorneys' fees, were changed to a "loser pays" format that exists in other parts of the world?
It was through this political and legislative turmoil that Quezon consolidated his power over Osmena and controlled the ruling Nationalista Party under American rule. Indeed, 'Philippine constitutional autocracy is as much American as it is Filipino' (p.
The appeals court had reversed Needham's decision based on the American Rule, which provides that parties to litigation are responsible for their own attorney fees and costs.
also nuked Russia, taking out Stalin and paving a way for a world under uncontested American rule. That set the stage for an American president to declare himself ruler for life, succeeded by his son, Junior Henderson, a sneering totalitarian who brooks no dissent.
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