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 idle funds. Such deposit in an interest-bearing account may be in the fiduciary’s own commercial bank or any affiliate thereof. Such investment in a money market mutual fund or any other generally accepted investment vehicle may include:

(1) a mutual fund or investment vehicle provided by a third party vendor, even if the bank or trust company or any affiliate thereof receives separate compensation from the vendor, or
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Terms Used In Alabama Code 19-4A-3

  • Fiduciary: A trustee, executor, or administrator.
  • fiduciary account: shall mean any account for which the bank or trust company has investment responsibility. See Alabama Code 19-4A-1
  • Trustee: A person or institution holding and administering property in trust.
(2) a mutual fund or investment vehicle provided by the bank or trust company or any affiliate thereof for which the bank or trust company or any affiliate thereof may receive compensation as the mutual fund or investment vehicle’s investment advisor, administrator, trustee, transfer agent, or other similar capacity.
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