prudent person rule

Definition of "prudent person rule"
  1. An obligation that a trusted agent such as a trustee or investment manager must make investments wisely, with care, offering reasonable returns, and primarily in low-risk assets
How to use "prudent person rule" in a sentence
  1. The prudent person rule deterred the pension fund manager from risky investments.
  2. As per the prudent person rule, the city treasurer focused on secure loans and blue chip securities.
  3. In line with the prudent person rule, the trustee's investments were cautious and conservative.

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