2007 California Probate Code Chapter 4. Investments And Purchase Of Property

CA Codes (prob:9730-9737)

9730.  Pending distribution of the estate, the personal
representative may invest money of the estate in possession of the
personal representative in any one  or more of the following:
   (a) Direct obligations of the United States, or of the State of
California, maturing not later than one year from the date of making
the investment.
   (b) An interest in a money market mutual fund registered under the
Investment  Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) or
an investment vehicle authorized for the collective investment of
trust funds pursuant to Section 9.18 of Part 9 of Title 12 of the
Code of Federal Regulations, the portfolios of which are limited to
United States government obligations maturing not later than five
years from the date of investment and to repurchase agreements fully
collateralized by United States government obligations.
   (c) Units of a common trust fund described in Section 1564 of the
Financial Code.  The common trust fund shall have as its objective
investment primarily in short term fixed income obligations and shall
be permitted to value investments at cost pursuant to regulations of
the appropriate regulatory authority.



9731.  (a) Pending distribution of the estate, upon a showing that
it is to the advantage of the estate, the court may order that money
of the estate in possession of the personal representative be
invested in securities of the United States or of this state.
   (b) To obtain an order under this section, the personal
representative or any interested person shall file a petition stating
the types of securities that are proposed to be purchased and the
advantage to the estate of the purchase.
   (c) Notice of the hearing on the petition shall be given as
provided in Section 1220.



9732.  (a) The court may order that money of the estate in
possession of the personal representative be invested in any manner
provided by the will if all of the following conditions are
satisfied:
   (1) The time for filing claims has expired.
   (2) All debts (as defined in Section 11401) have been paid or are
sufficiently secured by mortgage or otherwise, or there is sufficient
cash in the estate aside from the money to be invested to pay all
the debts, or the court is otherwise satisfied that all the debts
will be paid.
   (3) The estate is not in a condition to be finally distributed.
   (b) To obtain an order under this section, the personal
representative or any interested person shall file a petition showing
the general condition of the estate and the types of investments
that are proposed to be made.
   (c) Notice of the hearing on the petition shall be given as
provided in Section 1220.  In addition, the petitioner shall cause
notice of the hearing and a copy of the petition to be mailed to all
known devisees of property which is proposed to be invested.  Where
the property proposed to be invested is devised to a trust or
trustee, notice of the hearing and a copy of the petition shall be
mailed to the trustee or, if the trustee has not yet accepted the
trust, to the person named in the will as trustee.  Mailing pursuant
to this subdivision shall be to the person's last known address as
provided in Section 1220.
   (d) If no objection has been filed by an interested person, the
court may make an order authorizing or directing the personal
representative to invest such portion of the money of the estate as
the court deems advisable in the types of investments proposed in the
petition and authorized by the will.  If there is no objection by an
interested person and no substantial reason why some or all of the
investment powers given by the will should not be exercised, the
court shall make the order.  The order may be for a limited period or
until the administration of the estate is completed.  Upon petition
of the personal representative or any interested person, the order
may be renewed, modified, or terminated at any time.



9733.  (a) Pending distribution of the estate or at the time the
court makes an order for final distribution of the estate, on
petition of the personal representative or any interested person, the
court may, upon good cause shown, order that the personal
representative purchase an annuity from an insurer admitted to do
business in this state to satisfy a devise of an annuity or other
direction in the will for periodic payments to a devisee.
   (b) Notice of the hearing on the petition shall be given as
provided in Section 1220.



9734.  (a) If an asset of the estate consists of an option right,
the personal representative may exercise the option after
authorization by order of court upon a showing that the exercise
would be to the advantage of the estate and would be in the best
interest of the interested persons.  The personal representative may
use any funds or property in the estate to acquire the property
covered by the option.
   (b) A petition under this section may be filed by the personal
representative  or any interested person.
   (c) Notice of the hearing on the petition shall be given as
provided in Section 1220.



9735.  (a) After authorization by order of court, the personal
representative may purchase securities or commodities required to
perform an incomplete contract of sale where the decedent died having
sold but not delivered securities or commodities not owned by the
decedent.  The court's order shall fix the terms and conditions of
purchase.
   (b) A petition under this section may be filed by the personal
representative or by any party to the contract.  Notice of the
hearing on the petition shall be given as provided in Section 1220.
   (c) No notice of hearing need be given where the maximum purchase
price is fixed or where the securities or commodities are to be
purchased on an established stock, bond, or commodity exchange.




9736.  The personal representative may hold a security in the name
of a nominee or in any other form without disclosure of the estate so
that title to the security may pass by delivery.



9737.  (a) If an estate by reason of owning securities also owns or
receives subscription rights for the purchase of additional
securities, the personal representative may exercise the subscription
rights after authorization by order of court upon a showing that it
is to the advantage of the estate.
   (b) To obtain an order under this section, the personal
representative or any  interested person shall file a petition
stating the nature of the subscription rights and the advantage to
the estate of exercising them.
   (c) Notice of the hearing on the petition shall be given as
provided in Section 1220.