CHAPTER 207

FORMERLY

SENATE BILL NO. 337

AN ACT TO AMEND CHAPTER 33, TITLE 12 OF THE DELAWARE CODE TO PERMIT BANKS OR TRUST COMPANIES AUTHORIZED TO ESTABLISH COMMON FUNDS FOR THE COLLECTIVE INVESTMENT OF FUNDS HELD IN A FIDUCIARY CAPACITY TO ACQUIRE PRACTIONAL INTERESTS OF PARTICIPATION IN SUCH FUNDS WITH PROPERTY OTHER THAN CASH.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 3307 (b), Chapter 33 Title 12, Delaware Code, by striking the first sentence thereof and substituting the following in lieu thereof:

"At least once each 3 months, as of a predetermined date, a bank or trust company administering a common fund shall determine the fair value of the assets in the common fund. No fractional interest in the common fund shall be acquired or redeemed except on the basis of such valuation and as of such valuation date. A fractional interest in such common fund may only be acquired by payment

(i) in cash, or

(ii) in property other than cash, provided that such property other than cash is a permissible Investment under the terms of 83302 of this chapter and under the terms of the plan of a common fund.

If a fractional interest is acquired with property other than cash, such property shall be valued for the purposes of the acquisition in the same manner as assets are valued when held in the common fund and the purchaser shall bear all costs of the transfer to the common fund of title to such property. A fractional interest in such common fund may be redeemed by payment of an amount in cash, or ratably in kind, or partly in cash and partly in kind, equal to Its proportionate part of the fair value of the common fund."

Approved April 6, 1982.