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Simple English definitions for legal terms

prudent man rule

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A quick definition of prudent man rule:

The prudent man rule is a requirement that anyone who is responsible for investing money for someone else must do so carefully and wisely. This means they should only invest in safe and reliable things that will give a reasonable return, like government bonds or secured loans. Some states have laws that say exactly what kinds of investments are allowed. Unfortunately, some people have ignored this rule and invested in risky things to try to make more money, which has sometimes led to big problems.

A more thorough explanation:

The Prudent Man Rule is a requirement that applies to trustees, investment managers of pension funds, treasurers of cities or counties, or any fiduciary who manages funds on behalf of others. It mandates that they must invest the funds entrusted to them with discretion, care, and intelligence, just as a prudent person would do.

Under this rule, investments in solid "blue chip" securities, secured loans, federally guaranteed mortgages, treasury certificates, and other conservative investments that provide a reasonable return are considered acceptable. Some states have statutes that specify the types of investments that are allowable under the rule.

However, 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).

For example, a trustee of a pension fund may invest the fund's assets in a diversified portfolio of stocks, bonds, and other securities that are expected to provide a reasonable return while minimizing risk. The trustee must exercise due diligence in selecting the investments and monitoring their performance to ensure that they are consistent with the prudent man rule.

pro hac vice | quasi contract

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WorthlessAttractiveZombie
14:23
lavender, i looked at the stars last night and they said we're gonna hear from schools this week
heck yeah. I have a feeling we will
I got one answer so far from Mizzou and I was WL'ed but hey it's not the end it's just the beginning
that was Friday
WorthlessAttractiveZombie
14:26
keep swinging until you hear a bell
14:27
im from the future
14:27
kamala wins
14:27
276-262
I think she will too lol
WorthlessAttractiveZombie
14:27
since you're from the future, will fordham release today
14:28
no
WorthlessAttractiveZombie
14:28
fuck alright
14:28
not this week
14:28
dont even get ur hopes up u fool im from the year 2076
TheMidwestMonger
14:28
I'm terrified with how the world will react to Trump losing
WorthlessAttractiveZombie
14:28
damn, next question: should i eat the cheese that's been in my fridge for 3 weeks?
14:28
im pretty sure the world is gonna rejoice??
14:29
yes it is the key to immortality
TheMidwestMonger
14:29
Sorry, I meant the far right and their reaction lol
I live in alabama if she wins it's gonna be crazy here
14:30
same as last time whine that it was rigged go to court lose every time
good thing im bouncing next year
oh yeah
JumpySubsequentDolphin
14:31
why won’t ASU send my scholly info ☹️
WorthlessAttractiveZombie
14:31
they sent mine about 3 hours after i got the initial acceptance video thing
I just wanna hear back from them
14:31
the adcomm office got there at 10 am took a two hour lunch at 12 and left at 3:30 -- trust me im from the year 2076
lol
WorthlessAttractiveZombie
14:32
lavender, they should usually get back within a month of going complete
okie doke, thank u!
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