2013 Kentucky Revised Statutes CHAPTER 386 - ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT 386.540 Regulation of investments.
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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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