2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-3.1 - Trust Powers › Section 19-3.1-2. - Power to hold and invest assets.

§ 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.
History of Section.
P.L. 1995, ch. 82, § 41; P.L. 1995, ch. 266, § 1; P.L. 1998, ch. 441, § 11.