Section 514. Delegation of investment management

(a)  Except  as  otherwise provided by the applicable gift instrument,
  the governing board may (1) delegate  to  its  committees,  officers  or
  employees   of  the  corporation  or  the  fund,  or  agents,  including
  investment counsel, the authority to act in place of the governing board
  in investment and reinvestment of institutional funds, (2) contract with
  independent investment advisors, investment counsel or managers,  banks,
  or  trust  companies,  so  to  act,  and  (3)  authorize  the payment of
  compensation for investment advisory or management  services,  advisors,
  investment  counsel  or  managers,  banks or trust companies, so to act.
  Each contract pursuant to which authority is so delegated shall  provide
  that  it  may  be terminated by the governing board at any time, without
  penalty, upon not more than sixty days' notice.
    (b) The governing board shall exercise the standard of  care  required
  by  section  717  (Duty  of  directors and officers) in the selection of
  persons to whom authority is delegated or with whom contracts  are  made
  under  paragraph  (a)  of  this  section  and  in  the  continuation  or
  termination of such delegation or contracts.  The governing board  shall
  be  relieved  of  all  liability  for the investment and reinvestment of
  institutional funds by, and for the other acts or omissions of,  persons
  to whom authority is so delegated or with whom contracts are so made.