2006 Code of Virginia § 6.1-23 - Investment of trust funds

6.1-23. Investment of trust funds.

Funds received or held by the trust department of a bank or a trust company,or in a trust subsidiary, awaiting investment or distribution, shall beinvested or distributed as soon as practicable and shall not be helduninvested by such bank, trust company or trust subsidiary any longer than isreasonably necessary.

Where the instrument creating the trust does not specify the character orclass of investments to be made, and does not expressly invest in the bank,trust company or trust subsidiary, its officers or directors a discretion inthe matter of investments, funds held in trust shall be invested in anysecurities in which corporate or individual fiduciaries may lawfully invest.

Where the instrument under which a bank, trust company or trust subsidiary isserving as fiduciary or cofiduciary does authorize it to retain its own stockor securities, it shall be authorized to retain in like manner the stock orsecurities of a bank holding company of which it is a subsidiary.

Where the instrument under which a bank, trust company or trust subsidiary isserving as fiduciary or cofiduciary does authorize it to retain the stock orsecurities of a bank or trust company to the business of which the fiduciaryhas succeeded, or the stock or securities of a bank or trust company whichhas become a subsidiary of a bank holding company, such fiduciary shall beauthorized in like manner to retain the stock of the successor bank or trustcompany or bank holding company.

(Code 1950, 6-98, 6-101; 1966, c. 584; 1972, c. 740; 1974, c. 665; 1993,c. 432.)