6-871

6-871. Establishment of common trust
funds

A. Any bank, savings and loan association or trust company qualified to act as a
fiduciary in this state may establish and administer common trust funds composed of
property permitted by law for the investment of trust funds for the purpose of furnishing
investments to any one or more of the following:

1. Itself as fiduciary.

2. Itself and others, as cofiduciaries.

3. Any affiliated bank, savings and loan association or trust company, including
any foreign affiliated bank, savings and loan association or trust company, as fiduciary.

4. Any affiliated bank, savings and loan association or trust company, including
any foreign affiliated bank, savings and loan association or trust company, and others,
as cofiduciaries. Any bank, savings and loan association or trust company may as such
fiduciary or cofiduciary invest funds which it lawfully holds for investment in interests
in such common trust funds administered by itself or by any affiliated bank, savings and
loan association or trust company, including any foreign affiliated bank, savings and
loan association or trust company, if such investment is not prohibited by the
instrument, judgment, decree, order or statute creating and governing such fiduciary
relationship, and if, in the case of cofiduciaries, the bank, savings and loan
association or trust company procures the consent of its cofiduciaries for such
investment.

B. Each common trust fund established under this section is a separate and distinct
entity from the fiduciary relationships participating in the fund. A fiduciary in
administering a participating fiduciary relationship is not required to make any
apportionment or allocation between the principal and income of the relationship
different from that made for the common trust fund. A participating fiduciary
relationship, or person having an interest in the relationship, is not deemed to have any
ownership in particular property of the common trust fund, but each participating
fiduciary relationship has a proportionate undivided interest in the fund and its income
and the ownership of all property of the common trust fund is in the trustee of the fund.

C. This section applies to all fiduciary relationships, including those established
prior to April 21, 1980, whether the relationships are revocable or irrevocable. This
section and section 6-872 apply to common trust funds established under this section and
the banks, savings and loan associations and trust companies operating these common trust
funds.

D. For purposes of this section, two or more banks, savings and loan associations
or trust companies are affiliated if they are members of the same affiliated group,
within the meaning of section 1504 of the United States internal revenue code.

E. Nothing in this article shall exempt a common trust fund or any fiduciary
thereof from the requirements of title 20, if such common trust fund or fiduciary is used
for insurance purposes.