6-386. Investment by fiduciaries; governmental
obligations
In the absence of an express provision to the contrary, if an indenture or other
governing instrument directs, requires, authorizes or permits investment in United States
government obligations, a bank, trust company, trust department or other fiduciary may
invest in the obligations, either directly or in the form of securities or other
interests in any open end or closed end management type investment company or investment
trust registered under the investment company act of 1940 (54 Stat. 789; 15 United States
Code sections 80a-1 through 80a-64) if the portfolio of the investment company or
investment trust is limited to United States government obligations and repurchase
agreements fully collateralized by United States government obligations and the
investment company or investment trust takes delivery of the collateral for any
repurchase agreement either directly or through an authorized custodian.
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