§ 18-5-1 - Establishment by banks and trust companies authorized. - Rhode Island Statutes

SECTION 18-5-1

   § 18-5-1  Establishment by banks and trustcompanies authorized. – (a) Any trust company or national banking association qualified to act as afiduciary in this state may establish one or more common trust funds for thepurpose of investment and reinvestment of money received and held by the trustcompany or national banking association as fiduciary or cofiduciary, and as thefiduciary or cofiduciary it may invest funds which it lawfully holds forinvestment in interests or participations in one or more common trust fundsestablished by it, if the investment is not expressly prohibited by theinstrument, judgment, decree, or order creating the fiduciary relationship andif, in the case of cofiduciaries, it procures the consent of its cofiduciary orcofiduciaries to the investment.

   (b) Any trust company or national banking associationqualified to act as a fiduciary in this state may invest funds which it holdsin a fiduciary or cofiduciary capacity in any common trust fund established byany affiliate, if the investment is not expressly prohibited by the instrument,judgment, decree, or order creating the fiduciary relationship and if, in thecase of cofiduciaries, it procures the consent of its cofiduciary orcofiduciaries to the investment.