§ 53-8-9 - (Pre-1998 Probate Code) Securities of investment company or investment trust - Georgia Statutes

O.C.G.A. 53-8-9 (2010)
53-8-9. (Pre-1998 Probate Code) Securities of investment company or investment trust

(a) Whenever an instrument or court order establishing a fiduciary relationship authorizes, permits, requires, or directs a corporate fiduciary with trust powers under Georgia law to invest funds in direct and general obligations of the United States government, obligations unconditionally guaranteed by the United States government, or obligations of the agencies of the United States government enumerated in Code Section 53-12-280, such fiduciary may invest in and hold such obligations either directly or in the form of securities of or other interests in any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, as from time to time amended, so long as:

(1) The portfolio of such investment company or investment trust is limited to such obligations and repurchase agreements fully collateralized by such obligations;

(2) Such investment company or investment trust takes delivery of such collateral, either directly or through an authorized custodian; and

(3) Such investment company or investment trust is operated so as to provide a constant net asset value or price per share.

(b) Nothing contained in this Code section shall be construed as relieving any corporate fiduciary from any duty or liability it has under the prudent investor standard set forth in Code Sections 53-8-1 and 53-8-2.

(c) The authority granted in this Code section shall be applicable notwithstanding that the corporate fiduciary or an affiliate of the corporate fiduciary provides services to the investment company or investment trust as investment adviser, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise and receives compensation for such services.