CHAPTER 283

An Act to amend and reenact § 6.1-25 of the Code of Virginia, relating to
common trust funds and investments authorized therein.

Pew apr x» &
Be it enacted by the General Assembly of Virginia:
ae That § 6.1-25 of the Code of Virginia be amended and reenacted as

ollows:

§ 6.1.-25. Common trust funds and investments therein authorized.
—Any bank may establish and maintain one or more common trust funds
for the collective investment of funds held * in any fiduciary capacity, by
at or by another bank which is owned or controlled by a bank holding com-
pany which owns or controls such bank, including agency accounts under
which the bank exercises investment discretion and assumes fiduciary
responsibilities. The collective investment of funds of such agency ac-
counts shall be permitted only in a separate common trust fund composed
solely of assets of agency accounts. Such bank may invest the funds held
by it in any fiduciary capacity in one or more such common trust funds,
whether it be acting as sole fiduciary or with others as cofiduciaries
provided:

(1) That such investment in interests in such common trust funds
is not prohibited by the instrument, judgment, decree or order creating the
fiduciary relationship;

(2) That in the case of cofiduciaries, such bank procures the written
consent of its cofiduciary or cofiduciaries to such investment, which con-
sent such cofiduciary or cofiduciaries are hereby authorized to grant;

(3) That at the time of making an investment in any such common
trust fund not less than forty percent of the value of the assets of the
common trust fund shall be composed of cash and readily marketable in-
vestments after effecting the admissions and withdrawals then to be made.

In determining whether to invest in one or more common trust funds
the bank and its cofiduciaries, if any, may consider the common trust fund
as a whole and shall not, for example, be prohibited from making such
investment because any particular asset is nonincome producing; provided
that in making such investment in the fund as a whole, the fiduciary or
fiduciaries shall conform to the standard of judgment and care prescribed
in § 26-45.1 and the common trust fund shall not contain any asset which
the fiduciary or fiduciaries are expressly prohibited from purchasing by
the terms of the will or other instrument of the particular fiduciary
account whose funds are to be so invested.

(4) That the bank has no interest in any of the assets of the common
trust fund other than in a fiduciary capacity.