6-246. Permitted investments;
limitations
A. In addition to other investments authorized by law, a bank or trust company that
is acting as a fiduciary may invest and reinvest in the securities of an open-end or
closed-end management investment company or investment trust that is registered under the
investment company act of 1940 (15 United States Code section 80a-1), as amended, if the
portfolios of that investment company or investment trust consist of investments
permitted by the applicable fiduciary instrument. A bank or trust company may invest in
these securities notwithstanding that the bank or trust company, or an affiliate of the
bank or trust company, provides services to the investment company or investment trust as
an investment adviser, custodian, transfer agent, registrar, sponsor, distributor,
administrator, manager or otherwise and receives reasonable remuneration for those
services.
B. A bank or trust company that invests and reinvests in the securities of an
open-end or closed-end management investment company or investment trust authorized under
subsection A of this section shall disclose in the statement of the fiduciary account to
all persons whose funds are invested in the investment company or investment trust that
the bank or trust company provides services for and receives fees from the open-end or
closed-end management company or investment trust. A person who complies with the
requirements of section 14-10802, subsection F satisfies the disclosure requirements of
this subsection.
C. A bank may purchase for its own account any class of equity securities issued by
a banker's bank, as defined in section 6-204, if the aggregate investment does not exceed
ten per cent of the bank's capital.
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