1. In addition to the powers of investment granted to the trust company by the instrument creating the relationship of fiduciary or agent, a trust company which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the trust company as a fiduciary or agent, invest in the securities of an investment trust or investment company if:
(a)The investment trust or investment company is an investment company for the purposes of the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.; (b)The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship; and
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1. In addition to the powers of investment granted to the trust company by the instrument creating the relationship of fiduciary or agent, a trust company which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the trust company as a fiduciary or agent, invest in the securities of an investment trust or investment company if:
(a) The investment trust or investment company is an investment company for the purposes of the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.;
(b) The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship; and
(c) The relationship of the investment company to the trust company is disclosed to any person who is currently receiving statements for the account, by a prospectus, a statement of account or otherwise.
2. A retail trust company or an affiliate of the retail trust company that provides services to the investment trust or investment company, including, without limitation, acting as an adviser, custodian, transfer agent, registrar, sponsor, distributor or shareholder serving agent manager, may receive reasonable compensation for the services. The manner in which the compensation is calculated must be disclosed to any person who is currently receiving statements for the account by a prospectus, a statement of account or otherwise.
3. A retail trust company may deposit money held by the retail trust company as a fiduciary or agent that is awaiting investment or distribution as provided in the governing instrument for the account in an affiliated bank. To the extent that the money invested in an affiliated bank is not insured by the Federal Deposit Insurance Corporation, the retail trust company shall set aside collateral as security, under the control of appropriate fiduciary officers and employees, with a market value that at all times equals or exceeds the amount of the uninsured fiduciary money.
4. Notwithstanding subsections 1, 2 and 3, a retail trust company authorized to exercise trust powers in this State which is acting as a fiduciary shall not purchase for the fiduciary estate any fixed income or equity security issued by the retail trust company or an affiliate thereof other than an investment company, unless:
(a) The retail trust company is expressly authorized to do so by the terms of the instrument creating the trust, a court order, the written consent of the grantor of the trust or the written consent of every adult beneficiary of the trust who, at the time the notice is provided, receives, or is entitled to receive, income under the trust or who would be entitled to receive a distribution of principal if the trust were terminated; or
(b) The security is fairly priced and otherwise complies with the prudent investor standards of NRS 164.700 to 164.775 , inclusive, and the terms of the instrument, judgment, decree, or other document establishing the fiduciary relationship.