Sec. 36a-351. (Formerly Sec. 36-9z). Investment of funds exceeding one thousand dollars in income-producing media; fee. Written policy. Fiduciary obligations satisfied.
Sec. 36a-351. (Formerly Sec. 36-9z). Investment of funds exceeding one thousand dollars in income-producing media; fee. Written policy. Fiduciary obligations
satisfied. (a) Except as otherwise expressly provided in the instrument, judgment, decree
or order creating a trust or other fiduciary relationship or appointing a fiduciary, a bank
shall invest funds in excess of one thousand dollars held in a fiduciary capacity in anticipation of investment or distribution in accordance with the provisions of this subsection
within thirty days of receipt or accumulation thereof. Except as provided in this subsection, a bank shall invest such funds in income-producing media, which may include one
or more time deposits or savings deposits of such bank that provide a rate of return at
least equal to the highest publicly announced rate paid by such bank on deposits of similar
term and amount. A bank may charge a reasonable fee for the temporary investment of
such funds, which fee may be calculated on the basis of the amount of such funds or
income produced thereby.
(b) A bank shall adopt a written policy concerning the temporary investment of
funds, held in a fiduciary capacity with investment discretion, including the method by
which all fees charged in connection with the implementation of such policy will be
computed and collected. Current fiduciary customers and beneficiaries shall be advised
at least annually, in writing, of such policy and the amount of such fees shall be set forth
as a separate item in the report normally provided to the customer of such bank.
(c) A bank which complies with the provisions of this section shall be deemed to
have satisfied its fiduciary obligations and duties with respect to (1) the investment of
funds held in a fiduciary capacity in anticipation of investment or distribution, (2) the
charging of fees in connection therewith, and (3) the disclosure of policies, procedures
and fees in connection therewith.
(P.A. 86-234, S. 4, 6; P.A. 94-122, S. 164, 340.)
History: P.A. 94-122 deleted Subsec. (a) and relettered former Subsecs. (b) and (c) as Subsecs. (a) and (b), broadened
some requirements to cover funds held in any fiduciary capacity, added new Subsec. (c) re compliance with the section,
and made technical changes, effective January 1, 1995; Sec. 36-9z transferred to Sec. 36a-351 in 1995.