§ 3-512. Limitations on investments and interests

   (a) Limitations on investments and interests. -- Except as otherwise provided in this section, a trust company may not:

   (1) Invest its own funds in a common trust fund that it administers; or

   (2) Have any interest, other than its fiduciary interest, in the assets in a common trust fund that it administers.

(b) Withdrawal of interest. -- If, because of a creditor relationship or otherwise, a trust company acquires an interest in a participation in a common trust fund that it administers, the participation shall be withdrawn on the next valuation date allowed by the fund plan.

(c) Permitted investments. -- A trust company does not have a prohibited interest in the assets of a common trust fund that it administers merely because the trust company owns in its own right any stocks, bonds, or other obligations issued by a person from whom the fund also holds stocks, bonds, or other obligations.

HISTORY: An. Code 1957, art. 11, § 62; 1980, ch. 33, § 2.