§ 6-05-15 — Investment of trust funds

North Dakota § 6-05-15

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-05: Annuity, Safe Deposit, Surety, and Trust Companies

Text

Any sum of money, which is collected or received by any such corporation in its trust
capacity, and which is not required for the purposes of the trust, or which is not to be accounted
for within one year from the date of collection, receipt, or deposit, must be invested by the
corporation as soon as practicable.
In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing the
property for the benefit of another, the trustee shall exercise the judgment and care under the
circumstances then prevailing, which persons 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 foregoing standard, the trustee is authorized
to acquire and retain every kind of property, real, personal, or mixed, and every kind of
investment, specifically including but not by way of limitation, bonds, debentures, and other
corporate obligations and stocks, preferred or common, including investment trusts, mutual
funds, money market funds, and other similar funds in which the trustee or any of its affiliates
may have a beneficial interest, which persons of prudence, discretion, and intelligence acquire
or retain for their own account, and within the limitations of the foregoing standard, the trustee
may retain property properly acquired without limitation as to time and without regard to its
suitability for original purchase. The net interest and profits of such investments, less the
reasonable charges and disbursements of the corporation in connection therewith, must be
accounted for and paid over as a part of the trust. The net accumulations of interest and profits
likewise must be invested and reinvested as a part of the principal, and such investments must
be received and allowed in the settlement of the trust.