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286.3-230 Common trust funds -- Consent of cofiduciary.
(1)
(2)
(3)
(4)
(5)
(6)
Any trust company or bank empowered to act as a fiduciary under the laws of this
state and subject to examination by state or federal banking authorities may
establish and maintain one (1) or more common trust funds for the collective
investment of funds held in any fiduciary capacity by such trust company or bank or
by an affiliate of the trust company or bank including, without limitation, funds held
as agent where the trust company, bank, or affiliate exercises investment discretion
and assumes fiduciary responsibilities.
Before establishing a common trust fund as provided in subsection (1) of this
section, the trust company or bank shall file with the commissioner a statement of
the plan under which it proposes to establish, maintain, operate, and ultimately
liquidate the trust fund, and shall secure the written approval of the plan by the
commissioner.
After such a trust fund has been established, it may be modified or amended by
filing with the commissioner a statement setting forth the proposed modification or
amendment, and securing the written approval of the change by the commissioner.
The bank, trust company, or affiliate shall at all times maintain definite records
showing all securities and properties held in such fund.
The trust company, bank, or affiliate may invest funds held by it in any fiduciary
capacity in one (1) or more common trust funds established as provided in
subsection (1) of this section, or one (1) or more common trust funds wherever
located established, owned, or controlled by an affiliate of the trust company, bank,
or affiliate so long as:
(a) The investment is not specifically prohibited by the instrument, judgment
decree, or order creating the fiduciary relationship; and
(b) In the case of cofiduciaries, the trust company, bank, or affiliated bank
procures the written consent of its cofiduciary or cofiduciaries to the
investment, which consent the cofiduciary or cofiduciaries are hereby
authorized to grant.
As used in subsection (1) of this section, "affiliate of the trust company or bank"
means any trust company, bank, or other entity that controls, is controlled by, or is
under common control with the trust company, bank, or other entity.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 633, effective July 15, 2010. -- Amended
1996 Ky. Acts ch. 338, sec. 15, effective July 15, 1996. -- Amended 1986 Ky. Acts
ch. 391, sec. 3, effective July 15, 1986. -- Amended 1962 Ky. Acts ch. 134, sec. 1. -Amended 1946 Ky. Acts ch. 176, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. sec. 4706a.
Formerly codified as KRS 287.230.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286.
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