PART IV. INVESTMENT OF FIDUCIARY ASSETS

 

Cross References

 

  Uniform Fiduciaries Act, see chapter 556.

 

§412:8-400  General requirements. Within the limits of the standard of a prudent investor, a trust company asfiduciary, custodian, agent, personal representative, or otherwise may acquireand retain every kind of property, real, personal, or mixed and every kind ofinvestment, including without limitation bonds, debentures, and other corporateobligations, and corporate stocks, preferred or common, and securities of anyopen-end or closed-end management type investment company or unit investmenttrust registered under the federal Investment Company Act of 1940, as from timeto time amended, and may retain property properly acquired without limitation asto time and without regard to its suitability for original purchase. Notwithstanding any other law, and unless expressly prohibited by the governinginstrument, a trust company may invest fiduciary funds and other funds overwhich it has investment discretion in the securities of an investment companyor trust to which the trust company, or an affiliate of the trust company, isproviding services as investment advisor, sponsor, distributor, custodian,transfer agent, registrar, or otherwise, and is receiving reasonableremuneration for the services.  Nothing herein shall authorize a departure fromor variation of, the express terms or limitations set forth in the instrumentcreating the fiduciary relationship, but the terms "legal investment"or "authorized investment", or words of similar import, means anyinvestment conforming to the foregoing standard. [L 1993, c 350, pt of §1]