Delaware General Assembly



Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 33, Title 12, Delaware Code, is amended by repealing § 3307 and inserting in lieu thereof a new § 3307 to read as follows:

§ 3307. Common fund investments by bank or trust company; regulations

A bank or trust company authorized to act in a fiduciary capacity and acting in such capacity, other than merely as agent, may invest funds held by it for investment as fiduciary in fractional undivided interests in a common fund composed exclusively of property permitted for investment by the terms of Section 3302 of this title and of cash, if such common fund shall have been created and is managed exclusively by such bank or trust company as trustee under a written plan, an original copy of which, executed by such bank or trust company, has been filed and is recorded in the office of the Register in Chancery of the county in which such bank or trust company is located. Under such plan it shall not be permitted that any such fractional interests shall at any time be owned by other than such bank or trust company as fiduciary under will, under agreement, or for a mentally ill person, or as a guardian of a minor or of the property of an aged, mentally infirm or physically incapacitated person, or as executor or administrator. At least once each three months, as of a predetermined date, the fair value of the assets of the common fund shall be ascertained, and a fractional interest in such common fund may only be acquired or redeemed as of such predetermined date by payment, in the case of acquisition, of an amount in cash or United States Savings Bonds Series G at par therefor, or in the case of redemption, of an amount in cash or in kind, or partly in cash and partly in kind, equal to its proportionate part of the fair value of the common fund. A reasonable period following each such predetermined date may be used to make the computations necessary to determine the value of the common fund and of the participations therein. Unless a bank or trust company making an investment for a fiduciary account in a common fund shall find that the investments of the common fund as a whole are ones in which funds of such fiduciary account might not properly be invested at the time, the investment of such funds in such common fund shall not be improper. The bank or trust company shall not charge a fee or commission to the common fund or its management or receive any fees or commissions from any fiduciary estate which may be invested in a common fund other than those it would be entitled to receive if such estate were otherwise invested.

Approved December 13, 1965.

Note: § 3307, Title 12, Delaware Code, was codified as § 3307 (a)-(d).