Montana Code 32-1-420. Investment by trust fiduciary in management investment company or investment trust
32-1-420. Investment by trust fiduciary in management investment company or investment trust. (1) In the absence of an express prohibition in a trust instrument, a trust company fiduciary or the trust division of a financial institution, whether organized under state or federal law, may acquire and retain, invest, and reinvest fiduciary funds in the securities of or other interests in an open-end or closed-end management investment company or investment trust registered under 15 U.S.C. §§ 80a-1 through 80a-64.
Terms Used In Montana Code 32-1-420
- Acquire: means :
(a)the direct or indirect purchase or exchange of stock;
(b)the direct or indirect purchase of assets and liabilities; or
(c)a merger. See Montana Code 32-1-109
- Affiliate: has the meaning given in 12 U. See Montana Code 32-1-109
- Division: means the division of banking and financial institutions of the department. See Montana Code 32-1-109
- Fiduciary: A trustee, executor, or administrator.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)The investments authorized in subsection (1) may be made even if the fiduciary or an affiliate of the fiduciary is providing services to a management investment company or investment trust and is receiving compensation as an investment adviser or manager, sponsor, broker, distributor, custodian, transfer agent, or registrar or for a similar service. The fiduciary shall disclose to all current income beneficiaries of the trust the rate, formula, and method of compensation for the services provided.