18-A §7-408. Trustees authorized to invest trust funds in affiliated investments; limitations
Title 18-A: PROBATE CODE
Article 7: TRUST ADMINISTRATION
Part 4: POWERS OF TRUSTEES
§7-408. Trustees authorized to invest trust funds in affiliated investments; limitations
1. Authorization. Any association, corporation or financial institution authorized to exercise trust powers in this State while acting as a fiduciary is authorized to purchase for the fiduciary estate, directly from underwriters or distributors or in the secondary market, bonds or other securities underwritten or distributed by that association, corporation or financial institution or an affiliate or by any syndicate that includes that association, corporation or financial institution and securities of any investment company registered under the federal Investment Company Act of 1940 for which that association, corporation or financial institution or any affiliate acts as advisor, distributor, transfer agent, registrar, sponsor, manager, shareholder servicing agent or custodian. Any person acting as a cofiduciary with any association, corporation or financial institution or an affiliate is authorized to consent to the investment in such interests.
[ 1993, c. 213, §1 (NEW) .]
2. Limitations. The authority granted pursuant to subsection 1 may not be exercised:
A. If the investment is prohibited by the instrument, judgment, decree or order creating the fiduciary relationship; or [1997, c. 203, §1 (AMD).]
B. Unless, in the case of cofiduciaries, the association, corporation or financial institution or an affiliate procures the consent of its cofiduciaries to the investment. [1997, c. 203, §1 (AMD).]
C. [1997, c. 203, §2 (RP).]
[ 1997, c. 203, §§1, 2 (AMD) .]
3. Limitations on fees.
[ 1997, c. 203, §3 (RP) .]
4. Disclosures. The disclosures required by this section must be provided by mailing a statement or letter to the last known address of each person to whom statements for the fiduciary estate are provided. The disclosures may be provided separately or as part of other documents of the fiduciary estate. If made part of other documents of the fiduciary estate, the disclosures must be printed clearly and conspicuously on these documents.
A. A trustee purchasing bonds or securities pursuant to this section shall disclose in writing any capacities in which the trustee or an affiliate acts for the issuer of those bonds or securities and that the trustee or an affiliate may have an interest in the underwriting or distribution of those bonds or securities. [1997, c. 203, §4 (NEW).]
B. If the securities purchased are shares of an investment company subject to this section, the trustee shall disclose the services provided and the receipt of compensation for those services before the initial purchase and annually. [1997, c. 203, §4 (NEW).]
[ 1997, c. 203, §4 (NEW) .]
SECTION HISTORY
1993, c. 213, §1 (NEW). 1997, c. 203, §§1-4 (AMD).