prudent person rule
The requirement that a trustee, a city or county treasurer, an investment manager of pension funds, or any fiduciary (a trusted agent) must invest funds with discretion, care, and intelligence. Investments that are generally within the prudent person rule include solid "blue chip" securities, secured loans, federally guaranteed mortgages, treasury certificates, and other conservative investments providing a reasonable return. Some states have statutes that list the types of investments allowable under this rule.
Category: Personal Finance & Retirement

Nolo’s Plain-English Law Dictionary. . 2009.


prudent person rule
A standard that requires that a fiduciary entrusted with funds for investment may invest such funds only in securities that any reasonable individual interested in receiving a good return of income while preserving his or her capital would purchase.

Dictionary from West's Encyclopedia of American Law. 2005.


prudent person rule
A standard that requires that a fiduciary entrusted with funds for investment may invest such funds only in securities that any reasonable individual interested in receiving a good return of income while preserving his or her capital would purchase.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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