What standard applies to a Tribe's management of funds included in a funding agreement?

§ 29.416 What standard applies to a Tribe's management of funds included in a funding agreement? (a) A Tribe must invest and manage funds included in a funding agreement as a prudent investor would, in light of the purpose, terms, distribution requirements, and applicable provisions, in the compact and funding agreement. This duty requires the exercise of reasonable care, skill, and caution, and is to be applied to investments not in isolation, but in the context of the investment portfolio and as a part of an overall investment strategy, which should incorporate risk and return objectives reasonably suited to the Tribe. In making and implementing investment decisions, the Tribe has a duty to diversify the investments unless, under the circumstances, it is prudent not to do so. (b) A Tribe must: (1) Conform to fundamental fiduciary duties of loyalty and impartiality; (2) Act with prudence in deciding whether and how to delegate authority and in the selection and supervision of agents; and (3) Incur only costs that are reasonable in amount and appropriate to the investment responsibilities of the Tribe.