US Lawyer Database

Section 19-4A-1 – Idle Funds Defined.

Section 19-4A-1 Idle funds defined. Idle funds are defined as collected income and principal cash balances received by a fiduciary and held awaiting investment in or distribution from a fiduciary account. As used in this chapter, the term “fiduciary account” shall mean any account for which the bank or trust company has investment responsibility. (Acts […]

Section 19-5-10 – Fiduciary Not Liable for Acts in Good Faith.

Section 19-5-10 Fiduciary not liable for acts in good faith. Any fiduciary who in good faith acts or fails to act shall not be liable to any person for taking or failing to take any action authorized or required by this chapter. (Acts 1988, No. 88-340, p. 516, §10.)

Section 19-4A-2 – Investment in Accordance With Terms of Governing Document.

Section 19-4A-2 Investment in accordance with terms of governing document. A bank or trust company duly authorized to exercise fiduciary powers through the operation of a trust department shall invest idle funds in each fiduciary account in accordance with the specific terms of the governing document. (Acts 1991, No. 91-129, p. 163, §1(b).)

Section 19-5-11 – Applicability of Chapter.

Section 19-5-11 Applicability of chapter. This chapter applies to any trust or estate that may be subject to Chapter 13 of the Internal Revenue Code. (Acts 1988, No. 88-340, p. 516, §11.)

Section 19-4A-3 – Short-Term Investment Vehicle.

Section 19-4A-3 Short-term investment vehicle. In the absence of specific instructions in the governing document, the fiduciary shall invest idle funds in each fiduciary account in a short-term investment vehicle, which may include a deposit in an interest-bearing account, a money market mutual fund, or any other generally accepted investment vehicle for the investment of […]

Section 19-4A-4 – Reasonable Rate of Return; Considerations.

Section 19-4A-4 Reasonable rate of return; considerations. In the absence of specific instructions in the governing document, the fiduciary shall select an investment vehicle for idle funds in each fiduciary account which should provide a reasonable rate of return, taking into consideration the income needs of the current income beneficiary, the quality of the investment, […]

Section 19-4A-6 – Compensation.

Section 19-4A-6 Compensation. In the absence of specific instructions in the governing document, the fiduciary may receive compensation for the investment of idle funds by netting said compensation from the yield of the investment; provided, however, that disclosure of the compensation (expressed as a percentage of asset value or otherwise) is made to the current […]

Section 19-4A-7 – Applicability.

Section 19-4A-7 Applicability. The provisions of this chapter shall apply to all fiduciary accounts now existing or hereafter created, but only to the bank or trust company’s actions or inactions occurring after May 28, 1991. (Acts 1991, No. 91-129, p. 163, §1(g).)

Section 19-5-1 – Definitions.

Section 19-5-1 Definitions. For purposes of this chapter unless the context otherwise requires, the following terms mean: (1) FIDUCIARY. Includes a personal representative or trustee. (2) PERSONAL REPRESENTATIVE. An executor, administrator, special administrator, or a person who performs substantially the same function under the law governing the person’s status, and a successor to any of […]