§ 6.1-23. Investment of trust funds
Funds received or held by the trust department of a bank or a trust company, or in a trust subsidiary, awaiting investment or distribution, shall be invested or distributed as soon as practicable and shall not be held uninvested by such bank, trust company or trust subsidiary any longer than is reasonably necessary.
Where the instrument creating the trust does not specify the character or class of investments to be made, and does not expressly invest in the bank, trust company or trust subsidiary, its officers or directors a discretion in the matter of investments, funds held in trust shall be invested in any securities in which corporate or individual fiduciaries may lawfully invest.
Where the instrument under which a bank, trust company or trust subsidiary is serving as fiduciary or cofiduciary does authorize it to retain its own stock or securities, it shall be authorized to retain in like manner the stock or securities of a bank holding company of which it is a subsidiary.
Where the instrument under which a bank, trust company or trust subsidiary is serving as fiduciary or cofiduciary does authorize it to retain the stock or securities of a bank or trust company to the business of which the fiduciary has succeeded, or the stock or securities of a bank or trust company which has become a subsidiary of a bank holding company, such fiduciary shall be authorized in like manner to retain the stock of the successor bank or trust company or bank holding company.
(Code 1950, §§ 6-98, 6-101; 1966, c. 584; 1972, c. 740; 1974, c. 665; 1993, c. 432.)
Sections: Previous 6.1-16 6.1-17 6.1-18 6.1-19 6.1-20 6.1-21 6.1-22 6.1-23 6.1-24 6.1-25 6.1-30.1 6.1-30.2 6.1-30.3 6.1-31 6.1-31.1 NextLast modified: April 2, 2009