58-24a18. Standards for investments by fiduciaries; deviation from instrument or court order not authorized; in investment company or trust.
58-24a18
58-24a18. Standards for investments by fiduciaries;deviation from instrument or court order not authorized; in investment companyor trust.Nothing contained inK.S.A. 58-24a01, etseq., and amendments thereto, shall be construed as authorizinganydeparture from, or variation of, the express terms or limitations setforth in any will, agreement, court order or other instrument creatingor defining the fiduciary's duties and powers, but:
(a) Whenever any will, agreement, court order or other instrumentcreating or defining the fiduciary's duties and powers, directs, requires,authorizes or permits the fiduciary to invest in securities of a certainkind or class, the fiduciary, in the absence of an express provision to thecontrary, may buy, hold and sell such securities either directly or in theform of shares of or other interests in any open-end or closed-endmanagement type investment company or investment trust registered under theinvestment company act of 1940, or any common trust fund of a state ornational bank or trust company as authorized by K.S.A. 9-1609, andamendments thereto, if the portfolio of such investment company, investmenttrust or common trust fund is limited to securities of the designatedkind or class and to repurchase agreements fully collateralized by suchsecurities.
(b) The fact that such bank or trust company or an affiliate of the bankor trust company provides services to the investment company or investmenttrust such as that of an investment advisor, custodian, transfer agent,registrar, sponsor, distributor, manager or otherwise and is receivingreasonable remuneration for those services, shall not preclude such bank ortrust company from investing or reinvesting in the securities of an open-end orclosed-end management investment company or investment trust registered underthe investment companyact of 1940 (15 U.S.C. section 80a-1 et seq.) as amended.
With respect to any fiduciary account funds so invested, the bank or trustcompany or an affiliate of the bank or trust company shall conspicuouslydisclose by statement, prospectus, or otherwise to all current incomebeneficiaries of a fiduciary account the rate, formula or other method by whichthe remuneration for those services, provided to the investment company orinvestment trust, is determined. The investment into such investment companyor investment trust must be in the best interest of the beneficiary of thefiduciary account, must meet the prudent investor standard, as defined inK.S.A. 58-24a02, and amendments thereto, and the total amount of allfees,charges and compensation derived from the fiduciary account, and remunerationfor services provided to the investment company or investment trust, by thebank or trust company or an affiliate of the bank or trust company shall bereasonable.
History: L. 2001, ch. 75, § 3; July 1.