2006 South Dakota Code - 55-1A-9 — Investment of trust assets--Investing in securities of investment company ortrust.

     55-1A-9.   Investment of trust assets--Investing in securities of investment company or trust. A trustee may invest and reinvest trust assets in any property or in an undivided interest in any property, wherever located, including bonds, debentures, secured or unsecured notes, preferred or common stock of corporations, real estate or improvements thereon or any interest therein, oil and mineral leases or royalty or similar interests, and interests in trusts including investment trusts and common trust funds maintained by a corporate trustee. Any such investments may be made, regardless of any lack of diversification. In the absence of an express prohibition in the trust instrument, the trustee may acquire and retain securities of any open-end or closed-end management type investment company or investment trust registered under the Federal Investment Company Act of 1940, as amended to January 1, 1993. The fact that the trustee, or an affiliate of the trustee, is providing services to the investment company or trust as investment advisor, sponsor, broker, distributor, custodian, transfer agent, registrar or otherwise, and receiving compensation for the services does not preclude the trustee from investing in the securities of that investment company or trust. The trustee shall disclose to all current income beneficiaries of the trust the rate, formula and method of the compensation.

Source: SL 1979, ch 336, § 9; SL 1993, ch 354.