1959, Restatement (Second) of Trusts: Prudent Man Rule, Philadelphia, PA: American Law Institute, This is commonly referred to as the Restatement of Trusts 2d: Prudent Man Rule:
Investment Of Trust Funds Section 227 Investments Which a Trustee Can Properly Make In making investments of trust funds the trustee is under a duty to the beneficiary - 1. In the absence of provisions in the terms of the trust or of a statute otherwise providing, to make such investments and only such investments as a prudent man would make of his own property having in view the preservation of the estate and the amount and regularity of the income to be derived; 2. in the absence of provisions in the terms of the trust, to conform to the statutes, if any, governing investments by trustees; 3. to conform to the terms of the trust, except as stated in § 165-168.
