(a) A financial institution shall establish and maintain a fund in accordance with a written plan approved by resolution by the board of directors of the financial institution, or by a committee authorized by the board. The plan’s provisions shall be consistent with the provisions of this Chapter, as well as the rules and regulations of the Office of the Comptroller of the Currency, 12 C.F.R. § 9.18 (or any successor provision), and such rules and regulations as may from time to time be promulgated by the Commissioner, to the extent that such respective rules and regulations are not inconsistent with the provisions of this Chapter. The plan shall be updated quarterly, as needed, to reflect the recently available information relevant to the plan.

(b) The plan shall contain appropriate provisions as to the manner in which the financial institution will operate the fund, including, but not limited to, provisions relating to all of the following:

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(1) Investment powers and policies with respect to the fund;

(2) Allocation of income, profits, and losses;

(3) Fees and expenses that will be charged to the fund and to participating accounts, and the individuals contributing to the participating accounts stated as an expense ratio of the fund, inclusive of the expense ratios of all underlying investments;

(4) Terms and conditions governing the admission and withdrawal of participating accounts;

(5) Audits of participating accounts;

(6) Basis and method of valuing assets in the fund;

(7) Expected frequency of income distribution from the fund to participating accounts;

(8) Minimum frequency of valuation of fund assets;

(9) Amount of time following a valuation date in which a valuation of fund assets must be made;

(10) Basis upon which the financial institution may terminate the funds;

(11) Any other matters necessary to define clearly the rights of participating accounts and contributors to the participating accounts; and

(12) Annual performance history of the Fund, if any, for each year up to 10 years, and since inception net of all fees.

(c) The financial institution shall make a copy of the plan available at its principal office for inspection during all regular business hours, and shall provide a copy of the plan to any person who requests it.

(d) The financial institution shall submit a copy of the written plan, and any amendments made to the written plan, to the Commissioner upon adoption of such amendments.

(e) The financial institution shall provide to the investor a copy of the plan prior to any initial investment, and shall provide the most

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recently available copy of the plan to each investor annually, no later than the anniversary date of the initial investment.

SOURCE: Added by P.L. 32-038:1 (June 7, 2013).