Arkansas Code § 23-51-126 - Mutual Funds

(a) A state trust company may invest for its own account in equity securities of an investment company registered under the Investment Company Act of 1940, 15 U.S.C. Sec. 80a-1 et seq., and the Securities Act of 1933, 15 U.S.C. Sec. 77a et seq., if the portfolio of the investment company consists wholly of investments in which the state trust company could invest directly for its own account.

(b) If the portfolio of an investment company described in subsection (a) of this section consists wholly of investments in which the state trust company could invest directly without limitation under § 23-51-123(d), the state trust company may invest in the investment company without limitation.

(c) If the portfolio of an investment company described in subsection (a) of this section contains any investment that is subject to the limits of § 23-51-123(c), the state trust company may invest in the investment company not more than an amount equal to twenty percent (20%) of the state trust company's capital base. This provision does not apply to a money market fund.

(d) In evaluating investment limits under this chapter, a state trust company may not be required to combine:

(1) The state trust company's pro rata share of the securities of an issuer in the portfolio of an investment company with the state trust company's pro rata share of the securities of that issuer held by another investment company in which the state trust company has invested; or

(2) The state trust company's own direct investment in the securities of an issuer with the state trust company's pro rata share of the securities of that issuer held by each investment company in which the state trust company has invested under this section.

Section: Previous  23-51-119  23-51-120  23-51-121  23-51-122  23-51-123  23-51-124  23-51-125  23-51-126  23-51-127  23-51-128  23-51-129  23-51-130  23-51-131  23-51-132  23-51-133  Next

Last modified: November 15, 2016