2011 Kentucky Revised Statutes CHAPTER 386 ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT 386.540 Regulation of investments.
KY Rev Stat § 386.540 (1996 through Reg Sess) What's This?
386.540 Regulation of investments.
Trust institutions and foreign trust institutions, as defined by KRS 386.510, acting in a
fiduciary capacity and for fiduciary purposes, may, if exercising due care as a prudent
investor, and with the consent of any co-fiduciary, invest and reinvest funds held in such
fiduciary capacity in the shares of stock of one (1) or more fiduciary investment
companies, except where the will, trust indenture or other instrument under which such
trust institution or foreign trust institution acts, prohibits such investment, provided the
fiduciary investment company shall by its articles of incorporation issued and granted in
conformity with the Kentucky Business Corporation Act have and possess the corporate
powers required by KRS 386.510 to 386.590 and be subject to the limitations set forth by
KRS 386.510 to 386.590; provided, further, that no such trust institution or foreign trust
institution shall invest in the stock of a fiduciary investment company on behalf of any
estate, trust or fund administered by such trust institution or foreign trust institution a sum
or amount which would result in such estate, trust or fund having a total investment in
such stock in excess of the maximum amount or percentage that might be invested by
such estate, trust or fund, under the regulations of the federal or state agency charged with
supervising such trust institution or foreign trust institution, in any common trust fund
having total assets equal to the total assets of the fiduciary investment company as
increased by the proposed investment. No trust institution or foreign trust institution shall
invest in the stock of a fiduciary investment company if, immediately after such
investment and as a consequence thereof, it would own more than 25 percent of the
voting securities of such fiduciary investment company which would then be outstanding.
History: Created 1974 Ky. Acts ch. 300, sec. 5.
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