N.Y. General Business Law Section 1303
Fiduciary duty

The board, the individual members of the board, the trustees, any other agents appointed or engaged by the board, and all persons serving as program staff shall discharge their duties with respect to the program solely in the interest of the program’s enrollees and beneficiaries as follows:

1.

for the exclusive purposes of providing benefits to enrollees and beneficiaries and defraying reasonable expenses of administering the program;

2.

by investing with the care, skill, prudence, and diligence under the prevailing circumstances that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims; and

3.

by using any contributions paid by employees, and employers remitting employees’ own contributions into the fund exclusively for the purpose of paying benefits to the enrollees of the program, for the cost of administration of the program, and for investments made for the benefit of the program.

Source: Section 1303 — Fiduciary duty, https://www.­nysenate.­gov/legislation/laws/GBS/1303 (updated Feb. 2, 2024; accessed Jul. 26, 2025).

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Verified:
Jul. 26, 2025

Last modified:
Feb. 2, 2024

§ 1303. Fiduciary duty's source at nysenate​.gov

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