(a) In this subtitle the following words have the meanings indicated. (b) “Common trust fund” means a fund that a trust company maintains under this subtitle solely for the collective investment of money held by the trust company as fiduciary. (c) “Fund plan” means a written plan for the establishment and administration of a common trust fund. (d) “Trust […]
A trust company may establish and administer one or more common trust funds in accordance with the requirements of this subtitle.
The fiduciary capacities of a trust company referred to in this subtitle include all of those capacities in which a trust company may act under this article.
(a) A trust company shall establish and maintain a common trust fund only in accordance with a fund plan that is approved: (1) By resolution of the board of directors of the trust company; and (2) By legal counsel. (b) Notwithstanding any provision of law that applies to a participating fiduciary account, a fund plan controls: (1) Participations in the […]
Except as provided in § 3-507 of this subtitle, a fund plan shall state the name of the fund and include detailed provisions, not inconsistent with this subtitle, as to: (1) The intervals at which the trust company will determine the value of the assets in the fund; (2) The intervals at which the trust company will […]
(a) A fund plan may provide for: (1) The amortization of premiums on bonds or other obligations; (2) The disposition of discounts, profits, stock rights, stock dividends, and extraordinary dividends; (3) The allocation or apportionment between principal or income of the items specified in item (2) of this subsection; and (4) Any other similar matters. (b) To the extent that a […]
Notwithstanding any other provision of this subtitle, a trust company may provide in a fund plan that the fund shall be administered in accordance with those federal rules and regulations that relate to the collective investment of trust funds by national banking associations.
(a) A copy of the fund plan and any amendments to it shall be filed at the principal banking office of the trust company, where it shall be available during regular business hours for inspection by any cofiduciary or person who has an interest in a participating account. (b) On a reasonable request, a copy of the […]
A fund plan may be amended only: (1) Prospectively; and (2) By written amendments that are approved by resolution of the board of directors of the trust company.
A trust company, acting in a fiduciary capacity, may invest money in one or more common trust funds if: (1) The trust company holds the money for investment; and (2) The instrument or authorization that created the fiduciary relationship does not contain any terms inconsistent with this type of investment.
(a) A trust company may invest in a common trust fund money from an account that it administers as a cofiduciary if the trust company: (1) Otherwise may do so under § 3-510 of this subtitle; and (2) First obtains the written consent of all other cofiduciaries of that account. (b) A trust company that administers a common trust […]
(a) Except as otherwise provided in this section, a trust company may not: (1) Invest its own funds in a common trust fund that it administers; or (2) Have any interest, other than its fiduciary interest, in the assets in a common trust fund that it administers. (b) If, because of a creditor relationship or otherwise, a trust company […]
(a) Entry into and withdrawal from participation in a common trust fund may occur only on a valuation date, or, if provided by the plan, within 2 business days after a valuation date. (b) Participation shall be based on the valuation as of the valuation date associated with the entry or withdrawal. (c) When participation is withdrawn from […]
(a) (1) A trust company that administers a common trust fund may issue a certificate of participation for each participating account. (2) A certificate of participation is not assignable and may not be issued in any form that purports to be negotiable or assignable. (b) In any report or accounting required from the trust company by law, a statement […]
(a) The trust company that establishes a common trust fund has exclusive management and control of the fund, including the sole right to transfer, change, or dispose of the assets in the fund. (b) (1) Except as otherwise provided in paragraph (2) of this subsection, a trust company may not: (i) Charge a fee for the management of a […]
(a) For each common trust fund that it administers, a trust company shall set valuation dates at regular intervals of not more than 3 months. (b) At regular intervals of not more than 12 months, a trust company shall have an audit of each common trust fund by an independent certified public accountant who shall report directly […]
(a) The ownership of and title to the individual assets in a common trust fund are solely in the trust company, as trustee of the fund. (b) A trust company shall show clearly on its records: (1) The name of each fiduciary account on behalf of which the trust company holds a participation in a common trust fund; […]
(a) A trust company may register in the name of a nominee any assets of a common trust fund that it administers. (b) The nominee may be either an individual or a partnership. (c) A trust company that registers assets in the name of a nominee shall: (1) Show the assets and the name of the nominee on its […]
A trust company may invest the assets of a common trust fund in any investment in which a fiduciary who is not restricted by investment limitations under the governing instrument or authorization may invest under the laws of this State.
(a) A transfer agent or a transferee of an asset held in the name of a trustee of a common trust fund may presume conclusively that the trustee has an absolute right to transfer or assign the asset. (b) (1) A transfer agent or a transferee of an asset held in the name of a trustee of a […]
