6.1-30.1 - (Repealed effective October 1, 2010) Establishment of common trust and collective investment funds.
§ 6.1-30.1. (Repealed effective October 1, 2010) Establishment of commontrust and collective investment funds.
A. Any bank, trust company or trust subsidiary may establish and maintain oneor more common trust funds for the collective investment of qualifiedemployee benefit trusts or funds held in a fiduciary capacity by it includingagency accounts under which the bank exercises investment discretion andassumes fiduciary responsibilities (hereafter referred to as the"maintaining bank"). The maintaining bank may include, for the purposes ofcollective investment in such common trust fund or funds established andmaintained by it, funds held in a fiduciary capacity by any other bank, trustcompany or trust subsidiary duly authorized to act as a fiduciary, whereverlocated, which other bank or trust company is hereafter referred to as the"participating bank", provided that the relationship between themaintaining bank and the participating bank is (i) the maintaining bank owns,controls or is affiliated with the participating bank or (ii) a bank holdingcompany owns, controls or is affiliated with both the maintaining bank andthe participating bank.
B. Such maintaining bank may invest the funds held by it in any fiduciarycapacity in one or more common trust funds, provided (i) such investment isnot prohibited by the instrument, judgment, decree or order creating suchfiduciary relationship or amendment thereof; (ii) in the case ofco-fiduciaries the written consent of the co-fiduciary is obtained by themaintaining bank; and (iii) the maintaining bank has no interest in theassets of the common trust fund other than as a fiduciary.
C. As used in this chapter "common trust funds" shall mean common trustfunds which are described under § 584 of the Internal Revenue Code of 1954 asamended, as well as any other type of collective investment fund which isexempt from federal income taxation under any other provision of the InternalRevenue Code or regulations issued pursuant thereto.
(1983, c. 454.)