Sec. 45a-209. Investments in securities of open-end or closed-end management investment companies or investment trusts.
Sec. 45a-209. Investments in securities of open-end or closed-end management investment companies or investment trusts. (a) Notwithstanding any other provision of law, in addition to investments otherwise permitted, any trustee or fiduciary,
including a banking institution acting as a trustee or fiduciary, may, in the exercise
of its investment discretion or at the direction of another person authorized to direct
investments of funds held by the trustee or fiduciary, invest and reinvest in the securities
of an open-end or closed-end management investment company or investment trust
registered under the Investment Company Act of 1940, as from time to time amended,
provided (1) such investment is not prohibited by the governing instrument, (2) the
portfolio of the investment company or investment trust consists of investments not
prohibited by the governing instrument and (3) nothing in this section shall affect the
duty of prudence that is required of fiduciaries under the law of this state. For the purposes
of this section, "banking institution" includes any state or federally chartered bank,
savings bank or savings and loan association authorized to exercise trust powers and
do business in this state.
(b) The fact that the trustee or fiduciary, or an affiliate of the trustee or fiduciary,
provides services to the investment company or investment trust, including services as
an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager
or otherwise, and is receiving compensation for such services, shall not preclude the
trustee or fiduciary from investing or reinvesting in the securities of the investment
company or investment trust, provided disclosure of the provision of such services and
compensation is made annually to each current income beneficiary by mailing separate
notices, which shall include prospectus, statement or letter, to the current income beneficiary's last known address.
(P.A. 92-199; P.A. 93-399, S. 1, 2; P.A. 94-96, S. 2, 3; May 25 Sp. Sess. P.A. 94-1, S. 62, 130.)
History: P.A. 93-399 amended Subsec. (b) by deleting the former procedure re notification and disclosure and substituting a new annual notification and disclosure of services and compensation requirement for each current income beneficiary,
effective June 30, 1993; P.A. 94-96 and May 25 Sp. Sess. P.A. 94-1 made identical technical change in Subsec. (b), effective
May 23, 1994.