HOUSE BILL NO. 641
AN ACT TO AMEND CHAPTER 33, TITLE 12 OF THE DELAWARE CODE, RELATING TO BANKS OR TRUST COMPANIES ESTABLISHING COMMON FUNDS FOR THE COLLECTIVE INVESTMENT OF FUNDS HELD IN A FIDUCIARY OR AGENCY CAPACITY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 3307, subparagraphs (a), (c) and (d), Chapter 33 of Title 12, Delaware Code, by striking the subparagraphs in their entirety and substituting the following in lieu thereof:
"(a) A bank or trust company authorized to act in a fiduciary capacity or in the capacity of agent with investment discretion and acting in such capacity, may invest funds held by it for investment in fractional undivided interests in a common fund composed exclusively of property permitted for investment by the terms of §3302 of this title and of cash, if such common fund shall have been created and is managed by any bank or trust company authorized to act in a fiduciary capacity, as trustee under a written plan, an original copy of which, executed by such bank or trust company, has been filed and is recorded in the Office of the Register in Chancery of the county in which the main office of such bank or trust company is located. Under such plan it shall not be permitted that any such fractional interests shall at any time be owned by other than a bank or trust company as fiduciary under will, under agreement or for a mentally ill person or as guardian of a minor or of the property of an aged, mentally infirm cc physically incapacitated person or as executor or administrator or as custodian pursuant to Chapter 45 of this title or as agent with Investment discretion.'
(c) Unless a bank or trust company making an investment for an account in a common fund shall find that the investments of the common fund as a whole are ones in which the funds of such account might not properly be invested at the time, the investment in such common fund shall not be improper.'
(d) the bank or trust company may charge a fee or commission to the common fund for its management and receive fees or commissions from participating accounts which may be invested in a common fund in addition to those it would be entitled to receive If such accounts were otherwise invested."
Approved June 24, 1982.