§ 2-224. Standards of prudence.

(a)

The "prudent person" standard shall be used in the management of the overall investment portfolio. The term "prudent person" means the following: investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

(b)

Investment officers, or persons performing the investment functions, acting as a prudent person in accordance with this written policy and procedures, exercising due diligence and investing in investments authorized by law, shall be relieved of personal responsibility, for an individual security's credit risk or market price changes, provided deviations from the expectations are reported in a timely fashion as described in the internal control section of this policy, and appropriate action is taken to control adverse developments.

(Code 1999, § 2-223; Ord. No. 2001-02, § 1, 2-27-2001)