6.2-1007 - (Effective October 1, 2010) Investment of trust funds. - Virginia Statutes

§ 6.2-1007. (Effective October 1, 2010) Investment of trust funds.

A. Funds received or held by a trust institution awaiting investment ordistribution shall be invested or distributed as soon as practicable andshall not be held uninvested by the trust institution any longer than isreasonably necessary.

B. If the instrument creating the trust does not specify the character orclass of investments to be made, and does not expressly grant to the trustinstitution, its officers or directors discretion in the matter ofinvestments, funds held in trust shall be invested in any securities in whichcorporate or individual fiduciaries may lawfully invest.

C. If the instrument under which a trust institution is serving as fiduciaryor cofiduciary does authorize it to retain:

1. Its own stock or securities, it shall be authorized to retain in likemanner the stock or securities of a bank holding company of which it is asubsidiary; or

2. The stock or securities of a bank or trust company to the business ofwhich the fiduciary has succeeded, or the stock or securities of a bank ortrust company which has become a subsidiary of a bank holding company, suchfiduciary shall be authorized in like manner to retain the stock of thesuccessor bank or trust company or bank holding company.

(Code 1950, §§ 6-98, 6-101; 1966, c. 584, § 6.1-23; 1972, c. 740; 1974, c.665; 1993, c. 432; 2010, c. 794.)