§ 10-15-108 — Standard for investments by trustees

(1) Savings and loan
associations acting as trustees under the terms of this article shall invest trust
funds as otherwise authorized under the laws of this state relating to the
investment of funds by savings and loan associations and the federal law governing
such investments, but savings and loan associations shall accept trust funds only to
the extent that the full amount thereof is insured by the federal deposit insurance
corporation or its successor.

(2) Banks and trust companies acting as trustees under the terms of this
article shall be subject to the following investment standards: In acquiring,
investing, reinvesting, exchanging, retaining, selling, and managing property for the
benefit of others, trustees shall be required to have in mind the responsibilities
which are attached to such offices and the size, nature, and needs of the estates
entrusted to their care and shall exercise the judgment and care under the
circumstances then prevailing which men of prudence, discretion, and intelligence
exercise in the management of their own affairs, not in regard to speculation but in
regard to the permanent disposition of their funds, considering the probable income
as well as the probable safety of their capital. Within the limitations of the
standards set forth in this subsection (2), trustees are authorized to acquire and
retain every kind of property, real, personal, and mixed, and every kind of
investment, specifically including, but not by way of limitation, bonds, debentures,
and other corporate obligations, savings accounts in insured savings and loan
associations, stocks, preferred or common, securities of any open-end or closed-end management type investment company or investment trust, and participations
in common trust funds, which men of prudence, discretion, and intelligence would
acquire or retain for their own account.

(3) Credit unions acting as trustees under the terms of this article shall
invest funds received under an account agreement as authorized under the laws of
this state or the United States relating to the investment of funds by credit unions,
but a credit union shall accept trust funds only to the extent that the full amount
thereof is insured by the national credit union share insurance fund or other insurer
approved by the commissioner of financial services.

Legislative History

Source: L. 95: Entire article R&RE, p. 1041, � 1, effective May 25. L. 2004: (1) amended, p. 148, � 52, effective July 1.