2010 Pennsylvania Code
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 55 - Corporate Powers, Duties and Safeguards
5585 - Establishment or use of common trust funds authorized.

                               SUBCHAPTER C
                            COMMON TRUST FUNDS

     Sec.
     5585.  Establishment or use of common trust funds authorized.
     5586.  Restrictions on investments.
     5587.  Determination of interests.
     5588.  Amortization of premiums on securities held.
     5589.  Records; ownership of assets.
     § 5585.  Establishment or use of common trust funds authorized.
        (a)  General rule.--Every nonprofit corporation may establish
     and maintain one or more common trust funds, the assets of which
     shall be held, invested and reinvested by the corporation itself
     or by a corporate trustee to which the assets have been
     transferred pursuant to section 5549 (relating to transfer of
     trust or other assets to institutional trustee). Upon the
     payment by the corporate trustee to the nonprofit corporation of
     the net income from such assets, which income may be determined
     under section 5548(c) (relating to investment of trust funds) if
     such election is properly made by the board of directors or
     other body of the corporation, for use and application to the
     several participating interests in such common trust fund, the
     proportionate participation of each interest in such net income
     shall be designated by the corporate trustee. The nonprofit
     corporation may, at any time, withdraw the whole or part of any
     participating interest in such common trust fund for
     distribution by it as provided in this subchapter.
        (b)  Limitations in trust instrument.--Nothing contained in
     this section shall be construed to authorize the corporation to
     invest assets of a trust or fund in any such common trust fund
     contrary to any specific limitation or restriction contained in
     the trust instrument, nor to limit or restrict the authority
     conferred upon the corporation with respect to investments by
     any such trust instrument.
        (c)  Effect of good faith mistakes.--No mistakes made in good
     faith, and in the exercise of due care and prudence, in
     connection with the administration of any such common trust
     fund, shall be held to exceed any power granted to or violate
     any duty imposed upon the corporation, if, promptly after the
     discovery of the mistake, the corporation takes such action as
     may be practicable under the circumstances to remedy the
     mistake.
     (Dec. 21, 1988, P.L.1444, No.177, eff. Oct. 1, 1989; Dec. 21,
     1998, P.L.1067, No.141, eff. imd.)

        1998 Amendment.  Act 141 amended subsec. (a). Section 4 of
     Act 141 provided that the amendment of subsec. (a) shall apply
     to all trusts, whether created before, on or after the effective
     date of Act 141.
        Cross References.  Section 5585 is referred to in section
     5587 of this title.