§ 19-3.1-2. Power to hold and invest assets.
(a) Every financial institution subject to this chapter shall have the power:
(1) To receive and hold money in trust, or upon any terms and conditions agreed upon,
and to allow the interest upon it;
(2) To receive and hold money, bonds, notes, mortgages, certificates of stock, and other
securities, held in a fiduciary capacity. Interest on funds received and held may
be paid at any rates obtained or agreed upon;
(3) To receive and execute all trusts that may be created or transferred to it by the
decree of any court, and to receive all funds that may be deposited with it by an
order of any court, upon any terms agreed upon; and every court into which funds may
be paid by parties to any proceeding therein, or may be brought by order or judgment,
may by order direct the funds to be deposited with the financial institution. The
financial institution shall not be required to accept or execute any trust without
its written consent;
(4) In the absence of an express provision to the contrary in the instrument, judgment,
decree, or order creating a trust or other fiduciary relationship, to purchase for
the fiduciary estate, or to advise others, including any investment company or investment
trust, to purchase, directly from underwriters of distributors or in the secondary
market, bonds or other securities that are underwritten or distributed by the financial
institution or an affiliate or by any syndicate that includes the financial institution
or an affiliate and securities of any investment company or investment trust for which
the financial institution or any affiliate acts as adviser, distributor, transfer
agent, registrar, sponsor, manager, shareholder servicing agent, or custodian in return
for reasonable compensation; provided, however, that:
(i) Nothing in this subsection shall affect the degree of prudence required of fiduciaries
generally under the common law of the state; and
(ii) Any bonds or securities so purchased shall have sufficient liquidity and quality to
satisfy the principles of fiduciary investment; provided, further, that:
(A) Any financial institution purchasing bonds or other securities underwritten or distributed
by the financial institution or an affiliate or by any syndicate that includes the
financial institution or an affiliate shall, in any written communication or account
statement reflecting the purchase, disclose the fact that it or an affiliate may have
an interest in the underwriting or distribution of the bonds or securities and any
capacities in which it or an affiliate acts for the issuer of the securities; and
(B) Any financial institution purchasing securities of any investment company or investment
trust for which the financial institution or any affiliate acts as advisor, distributor,
transfer agent, registrar, sponsor, manager, shareholder servicing agent, or custodian
shall disclose the provision of the stated services, and the receipt of compensation
for services, annually by mailing a prospectus, statement, or letter describing the
services to the last known address of each person to whom statements for the fiduciary
estate are rendered.
(b) For the purposes of this section, the term "financial institution� shall include insured-deposit-taking
institutions duly organized under the laws of the United States and empowered to exercise
trust powers.