2016 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 286.3-275 Limits on liability of bank or trust company acting as fiduciary.
Download as PDF
286.3-275 Limits on liability of bank or trust company acting as fiduciary.
(1)
(2)
(3)
When an instrument, under which a bank empowered to act as a fiduciary or trust
company acts, reserves in the grantor, or vests in an advisory or investment
committee or in one (1) or more other persons, any power, including, but not
limited to, the authority to direct the acquisition, disposition, or retention of any
investment or the power to authorize any act that the bank or trust company may
propose, the fiduciary is not liable, either individually or as a fiduciary, for either of
the following:
(a) Any loss that results from compliance with an authorized direction of the
grantor, committee, person, or persons; or
(b) Any loss that results from a failure to take any action proposed by the bank or
trust company that requires the prior authorization of the grantor, committee,
person, or persons if the bank or trust company timely sought but failed to
obtain that authorization.
The bank or trust company referred to in subsection (1) of this section is relieved
from any obligation to perform investment reviews and make recommendations
with respect to any investments to the extent the grantor, an advisory or investment
committee, or one (1) or more other persons have authority to direct the acquisition,
disposition, or retention of any investment.
This section shall not apply to the extent that the instrument, under which the bank
or trust company referred to in subsection (1) of this section acts, contains
provisions that are inconsistent with this section.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 338, sec. 5, effective July 15, 1996.
Formerly codified as KRS 287.275.
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
