6.2-1009 - (Effective October 1, 2010) Common trust and collective investment funds.
§ 6.2-1009. (Effective October 1, 2010) Common trust and collectiveinvestment funds.
A. As used in this section:
"Common trust fund" means a common trust fund described under § 584 of theInternal Revenue Code of 1986, as amended, as well as any other type ofcollective investment fund that is exempt from federal income taxation underany other provision of the Internal Revenue Code or regulations issuedpursuant thereto.
"Maintaining bank" means a trust institution that establishes and maintainsa common trust fund for the collective investment of qualified employeebenefit trusts or funds held in a fiduciary capacity by it, including agencyaccounts under which the institution exercises investment discretion andassumes fiduciary responsibilities.
"Participating bank" means a trust institution duly authorized to act as afiduciary, wherever located, that is owned, controlled by, or affiliated with(i) a maintaining bank or (ii) a bank holding company that also owns,controls, or is affiliated with a maintaining bank.
B. Any trust institution may establish and maintain one or more common trustfunds for the collective investment of qualified employee benefit trusts orfunds held in a fiduciary capacity by it, including agency accounts underwhich the institution exercises investment discretion and assumes fiduciaryresponsibilities.
C. The maintaining bank may include, for the purposes of collectiveinvestment in a common trust fund or funds established and maintained by it,funds held in a fiduciary capacity by any participating bank.
D. A 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.
E. Unless ordered by an appropriate court, the maintaining bank operating acommon trust fund shall not be required to render a court accounting withregard to such fund; but, by application to an appropriate court, it maysecure approval of such an accounting on such conditions as the court mayestablish. This section shall not affect the duties of the trustees of theparticipating trusts under the common trust fund to render accounts of theirseveral trusts.
F. All common trust funds shall be operated in conformity with theregulations issued from time to time by the Commission, which regulationsshall conform substantially to the regulations of the Comptroller of theCurrency governing the operations of common trust funds.
(1983, c. 454, §§ 6.1-30.1, 6.1-30.2, 6.1-30.3; 1984, c. 299; 2010, c. 794.)