§ 3-512

Maryland § 3-512

• Jurisdiction: Maryland
• Article gfi: Financial Institutions
• Title: 3

Text

(a) Except as otherwise provided in this section, a trust company may not:

(1) Invest its own funds in a common trust fund that it administers; or

(2) Have any interest, other than its fiduciary interest, in the assets in a common trust fund that it administers.

(b) If, because of a creditor relationship or otherwise, a trust company acquires an interest in a participation in a common trust fund that it administers, the participation shall be withdrawn on the next valuation date allowed by the fund plan.

(c) A trust company does not have a prohibited interest in the assets of a common trust fund that it administers merely because the trust company owns in its own right any stocks, bonds, or other obligations issued by a person from whom the fund also holds stocks, bonds, or other obligations.