Code of Alabama - Title 19: Fiduciaries and Trusts - Chapter 4A - Idle Funds in Fiduciary Accounts

• Section 19-4A-1 Idle funds defined
  Idle funds are defined as collected income and principal cash balances received by a fiduciary and held awaiting investment in or distribution from a fiduciary...
• Section 19-4A-2 Investment in accordance with terms of governing document
  A bank or trust company duly authorized to exercise fiduciary powers through the operation of a trust department shall invest idle funds in each fiduciary...
• Section 19-4A-3 Short-term investment vehicle
  In the absence of specific instructions in the governing document, the fiduciary shall invest idle funds in each fiduciary account in a short-term investment vehicle,...
• Section 19-4A-4 Reasonable rate of return; considerations
  In the absence of specific instructions in the governing document, the fiduciary shall select an investment vehicle for idle funds in each fiduciary account which...
• Section 19-4A-5 Investment in timely manner; no obligation to invest funds less than $1,000
  In the absence of specific instructions in the governing document, the fiduciary shall invest idle funds in each fiduciary account in a timely manner consistent...
• Section 19-4A-6 Compensation
  In the absence of specific instructions in the governing document, the fiduciary may receive compensation for the investment of idle funds by netting said compensation...
• Section 19-4A-7 Applicability
  The provisions of this chapter shall apply to all fiduciary accounts now existing or hereafter created, but only to the bank or trust company's actions...

Last modified: May 3, 2021