                                 CODE OF VIRGINIA

PRUDENT INVESTOR RULE (§ 64.2-781)

A. Except as otherwise provided in subsection B or &#xA7; 2.2-4519 or 64.2-1502,
a trustee who invests and manages trust assets owes a duty to the beneficiaries
of the trust to comply with the prudent investor rule set forth in this article.

B. The prudent investor rule, a default rule, may be expanded, restricted,
eliminated, or otherwise altered by the provisions of a trust. A general
authorization in a controlling document authorizing a trustee to invest in such
assets as the trustee, in his sole discretion, may deem best, or other language
purporting to expand the trustee&#8217;s investment powers, shall not be
construed to waive the rule of subsection A unless the controlling document
expressly manifests an intention that it be waived (i) by reference to the
&#8220;prudent man&#8221; or &#8220;prudent investor&#8221; rule, (ii) by
reference to power of the trustee to make &#8220;speculative&#8221; investments,
(iii) by an express authorization to acquire or retain a specific asset or type
of asset such as a closely held business, or (iv) by other language synonymous
with clause (i), (ii) or (iii). A trustee shall not be liable to a beneficiary
for the trustee&#8217;s good faith reliance on a waiver of the rule of
subsection A.

HISTORY: 1999, c. 772, § 26-45.3; 2012, c. 614.