6.1-24 - (Repealed effective October 1, 2010) Dealings with self or affiliates.
§ 6.1-24. (Repealed effective October 1, 2010) Dealings with self oraffiliates.
No trust company or bank doing a trust business or trust subsidiary shall buyany property for a trust or estate from itself, or a department or branchthereof, or from an affiliate or subsidiary corporation, or from a director,officer or employee of such trust company, bank or trust subsidiary. Any suchpurchase shall be voidable at the election of any beneficiary or successortrustee, unless (i) approved by an appropriate court, (ii) consented to byall beneficiaries after full and fair disclosure, (iii) authorized by theinstrument creating the fiduciary relationship or (iv) permitted by ruling ofthe Commissioner of Financial Institutions.
A sale of any trust or fiduciary property by a trust company or bank doing atrust business or trust subsidiary to itself, or a department or branch ofsuch trust company, bank or trust subsidiary, or to an affiliate orsubsidiary corporation, or to a director, officer or employee of such trustcompany, bank or trust subsidiary, except as (i) approved by an appropriatecourt, (ii) consented to by all beneficiaries after full and fair disclosure,(iii) authorized by the instrument creating the fiduciary relationship or(iv) permitted by ruling of the Commissioner of Financial Institutions, shallbe a breach of trust and voidable at the election of any beneficiary orsuccessor trustee.
But a trust company, bank or trust subsidiary as fiduciary of one estate ortrust may buy or sell from or to itself as fiduciary of another estate ortrust, assets which at the time of sale are permissible fiduciary investmentsunder Title 26, if the transaction is fair to both estates or trusts and isnot prohibited by the terms of any instrument under which the fiduciary isacting.
(Code 1950, § 6-102; 1966, c. 584; 1974, c. 665; 1991, c. 252.)