Section 3-505 – Required Provisions for Fund Plans
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 […]
Section 3-506 – Optional Provisions for Fund Plans
(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 […]
Section 3-507 – Optional Method of Administration
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.
Section 3-508 – Filing of Fund Plan; Inspection; Copying
(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 […]
Section 3-509 – Amendment of Fund Plan
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.
Section 3-510 – Investment in Fund
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.
Section 3-511 – Cofiduciaries
(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 […]
Section 3-512 – Limitations on Investments and Interests
(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 […]
Section 3-513 – Fund Entry and Withdrawal; Valuation; Distribution
(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 […]
Section 3-514 – Evidence of Participation in Fund
(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 […]