§ 6.1-24. Dealings with self or affiliates
No trust company or bank doing a trust business or trust subsidiary shall buy any property for a trust or estate from itself, or a department or branch thereof, or from an affiliate or subsidiary corporation, or from a director, officer or employee of such trust company, bank or trust subsidiary. Any such purchase shall be voidable at the election of any beneficiary or successor trustee, unless (i) approved by an appropriate court, (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.
A sale of any trust or fiduciary property by a trust company or bank doing a trust business or trust subsidiary to itself, or a department or branch of such trust company, bank or trust subsidiary, or to an affiliate or subsidiary corporation, or to a director, officer or employee of such trust company, bank or trust subsidiary, except as (i) approved by an appropriate court, (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, shall be a breach of trust and voidable at the election of any beneficiary or successor trustee.
But a trust company, bank or trust subsidiary as fiduciary of one estate or trust may buy or sell from or to itself as fiduciary of another estate or trust, assets which at the time of sale are permissible fiduciary investments under Title 26, if the transaction is fair to both estates or trusts and is not prohibited by the terms of any instrument under which the fiduciary is acting.
(Code 1950, § 6-102; 1966, c. 584; 1974, c. 665; 1991, c. 252.)
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