§ 6.1-30.1. Establishment of common trust and collective investment funds
A. Any bank, trust company or trust subsidiary may establish and maintain one or more common trust funds for the collective investment of qualified employee benefit trusts or funds held in a fiduciary capacity by it including agency accounts under which the bank exercises investment discretion and assumes fiduciary responsibilities (hereafter referred to as the "maintaining bank"). The maintaining bank may include, for the purposes of collective investment in such common trust fund or funds established and maintained by it, funds held in a fiduciary capacity by any other bank, trust company or trust subsidiary duly authorized to act as a fiduciary, wherever located, which other bank or trust company is hereafter referred to as the "participating bank", provided that the relationship between the maintaining bank and the participating bank is (i) the maintaining bank owns, controls or is affiliated with the participating bank or (ii) a bank holding company owns, controls or is affiliated with both the maintaining bank and the participating bank.
B. Such maintaining bank may invest the funds held by it in any fiduciary capacity in one or more common trust funds, provided (i) such investment is not prohibited by the instrument, judgment, decree or order creating such fiduciary relationship or amendment thereof; (ii) in the case of co-fiduciaries the written consent of the co-fiduciary is obtained by the maintaining bank; and (iii) the maintaining bank has no interest in the assets of the common trust fund other than as a fiduciary.
C. As used in this chapter "common trust funds" shall mean common trust funds which are described under § 584 of the Internal Revenue Code of 1954 as amended, as well as any other type of collective investment fund which is exempt from federal income taxation under any other provision of the Internal Revenue Code or regulations issued pursuant thereto.
(1983, c. 454.)
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