SECTIONS 10250-10251

10250.  (a) Any corporation organized under the provisions of or forthe purposes set forth in Part 6 (commencing with Section 10000) ofthis division or organized on or prior to December 31, 1979, underthe provisions of or for purposes set forth in Part 3 (commencingwith Section 10200) of this division, then in effect, or organizedunder or subject to Part 2 (commencing with Section 5110), ororganized under or subject to Part 4 (commencing with Section 9110),may, if authorized so to do by its articles of incorporation,establish one or more common trust funds for the purpose offurnishing investments to such corporation or to any church, parish,congregation, society, chapel, mission, religious, beneficial,charitable or educational institution affiliated with it, or to anyorganization, society or corporation holding funds or property forthe benefit of any of the foregoing, or holding funds for the purposeof supporting a bishop, priest, religious pastor, or teacher or anybuilding or buildings used by or owned by any of the foregoing,whether holding such funds or property as fiduciary or otherwise.Notwithstanding the provisions of any general or special law in anyway limiting the right of any of the foregoing or the officers ordirectors thereof, as fiduciary or otherwise, to invest funds held bythem, it shall be lawful for any of the foregoing to invest any orall of their funds or property in shares or interests of such commontrust fund or trust funds; provided, that, in the case of funds orproperty held as fiduciary, such investment is not prohibited by thewording of the will, deed or other instrument creating such fiduciaryrelationship. (b) The directors or trustees of any such common trust fund, ortrust funds, so organized, may employ such officers or agents as theythink best, define their duties, and fix their compensation. Theymay also appoint a trust company or bank as custodian of the trustestate and may employ an investment adviser or advisers, define theirduties, and fix their compensation. Securities which constitute partor all of the trust estate may be deposited in a securitiesdepository, as defined in Section 30004 of the Financial Code, whichis licensed under Section 30200 of the Financial Code or exemptedfrom licensing thereunder by Section 30005 or 30006 of the FinancialCode, and such securities may be held by such securities depositoryin the manner authorized by Section 775 of the Financial Code. (c) The directors or trustees of any such common trust fund, ortrust funds, shall pay ratably among the holders of shares orbeneficial certificates then outstanding, semiannual dividends whichshall approximately equal, in each fiscal year, the net income of thetrust, or trusts. (d) The provisions of the Corporate Securities Law (Division 1(commencing with Section 25000) of Title 4) shall not apply to thecreation, administration, or termination of common trust fundscreated hereunder, nor to participation therein.10251.  (a) "Educational institution," as used in this section,means any nonprofit corporation organized under Chapter 4 (commencingwith Section 94400) or Chapter 7 (commencing with Section 94700) ofPart 59 of the Education Code or organized under Part 1 (commencingwith Section 9000) of this division in effect on December 31, 1979,and designated on or after January 1, 1980, as a nonprofit publicbenefit corporation, or organized for charitable or eleemosynarypurposes under Part 2 (commencing with Section 5110) of thisdivision, or Part 3 (commencing with Section 10200) of this divisionin effect on December 31, 1979, and designated on or after January 1,1980, as a nonprofit public benefit corporation for the purpose ofestablishing, conducting or maintaining an institution offeringcourses beyond high school and issuing or conferring a diploma or forthe purpose of offering or conducting private school instruction onthe high school or elementary school level and any charitable trustorganized for such purpose or purposes. "Educational institution," asused in this section, also means the University of California, theCalifornia State University, the California Community Colleges, andany auxiliary organization, as defined in Section 89901 of theEducation Code, established for the purpose of receiving gifts,property and funds to be used for the benefit of a state college. (b) It shall be lawful for any educational institution to become amember of a nonprofit corporation incorporated under the laws of anystate for the purpose of maintaining a common trust fund or similarcommon fund in which nonprofit organizations may commingle theirfunds and property for investment and to invest any and all of itsfunds, whenever and however acquired, in the common fund or funds;provided that, in the case of funds or property held as fiduciary,the investment is not prohibited by the wording of the will, deed, orother instrument creating the fiduciary relationship. (c) An educational institution electing to invest in a common fundor funds under this section may elect to receive distributions fromeach fund in an amount not to exceed for each fiscal year the greaterof the income, as determined under the Uniform Principal and IncomeAct, Chapter 3 (commencing with Section 16320) of Part 4 of Division9 of the Probate Code, accrued on its interest in the fund or 10percent of the value of its interest in the fund as of the last dayof its next preceding fiscal year. The educational institution mayexpend the distribution or distributions for any lawful purposenotwithstanding any general or special law characterizing thedistribution, or any part thereof, as principal or income; providedthat, in the case of funds or property invested as fiduciary, theexpenditure is not prohibited by the wording of the will, deed, orother instrument creating the fiduciary relationship. No suchprohibition of expenditure shall be deemed to exist solely because awill, deed, or other instrument, whether executed or in effect beforeor after the effective date of this section, directs or authorizesthe use of only the "income," or "interest," or "dividends" or"rents, issues or profits," or contains words of similar import. (d) The Corporate Securities Law of 1968 shall not apply to thecreation, administration, or termination of common trust fundsauthorized under this section, or to participation therein. (e) This section shall become operative on January 1, 1997.