State Codes and Statutes
Statutes > Utah > Title-07 > Chapter-05 > 7-5-77-5-7. Management and investment of trust funds.
(1) Funds received or held by any trust company as agent or fiduciary, whether forinvestment or distribution, shall be invested or distributed as soon as practicable as authorizedunder the instrument creating the account and may not be held uninvested any longer than isreasonably necessary.
(2) If the instrument creating an agency or fiduciary account contains provisionsauthorizing the trust company, its officers, or its directors to exercise their discretion in thematter of investments, funds held in the trust account under that instrument may be invested onlyin those classes of securities which are approved by the directors of the trust company or acommittee of directors appointed for that purpose. If a trust company acts in any agency orfiduciary capacity under appointment by a court of competent jurisdiction, it shall make andaccount for all investments according to the provisions of Title 75, Utah Uniform Probate Code,unless the underlying instrument provides otherwise.
(3) (a) Funds received or held as agent or fiduciary by any trust company which is also adepository institution, whether for investment or distribution, may be deposited in thecommercial department or savings department of that trust company to the credit of its trustdepartment. Whenever the funds so deposited in a fiduciary or managing agency account exceedthe amount of federal deposit insurance applicable to that account, the trust company shalldeliver to the trust department or put under its control collateral security as outlined inRegulation 9.10 of the Comptroller of the Currency or in Regulation 550.8 of the Office of ThriftSupervision, as amended. However, if the instrument creating such a fiduciary or managingagency account expressly provides that funds may be deposited to the commercial or savingsdepartment of the trust company, then the funds may be so deposited without setting asidecollateral securities as required under this section and the deposits in the event of insolvency ofany such trust company shall be treated as other general deposits are treated. A trust companywhich deposits trust funds in its commercial or savings department shall be liable for interest onthe deposits only at the rates, if any, paid by the trust company on deposits of like kind not madeto the credit of its trust department.
(b) Funds received or held as agent or fiduciary by a trust company, whether forinvestment or distribution, may be deposited in an affiliated depository institution. Whenever thefunds so deposited in a fiduciary or managing agency account exceed the amount of federaldeposit insurance applicable to that account, the depository institution shall deliver to the trustcompany or put under its control collateral security as outlined in Regulation 9.10 of theComptroller of the Currency or in Regulation 550.8 of the Office of Thrift Supervision asamended. However, if the instrument creating the fiduciary or managing agency accountexpressly permits funds to be deposited in the affiliated depository institution, the funds may beso deposited without setting aside collateral securities as required under this section and depositsin the event of insolvency of the depository institution shall be treated as other general depositsare treated. A trust company which deposits trust funds in an affiliated depository institution isliable for interest on the deposits only at the rates, if any, paid by the depository institution ondeposits of like kind.
(4) In carrying out all aspects of its trust business, a trust company shall have all thepowers, privileges, and duties as set forth in Sections 75-7-813 and 75-7-814 with respect totrustees, whether or not the trust company is acting as a trustee as defined in Title 75.
(5) Nothing in this section may alter, amend, or limit the powers of a trust company
acting in a fiduciary capacity as specified in the particular instrument or order creating thefiduciary relationship.
Amended by Chapter 378, 2010 General Session
