Delaware General Assembly


CHAPTER 41

COURT OF CHANCERY - RELATING TO INVESTMENTS OF TRUSTEES, GUARDIANS AND OTHER FIDUCIARIES

AN ACT TO AMEND CHAPTER 117, REVISED CODE OF DELAWARE, 1935, AS AMENDED, RELATING TO INVESTMENTS OF TRUSTEES, GUARDIANS AND OTHER FIDUCIARIES.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 117 of the Revised Code of Delaware, 1935, as amended by Chapter 19, Volume 47, Laws of Delaware, 1949, be and the same is hereby further amended by striking out and repealing all of sub-division (C) of 4401. Sec. 35. thereof and enacting and inserting in lieu thereof the following, to wit:

(C) Nothing contained in this Section 35 shall be construed as authorizing any departure from, or variation of, the express terms or limitations set forth in any will, agreement, court order or other instrument creating or defining the fiduciary's duties and powers, but the terms "legal investment" or "authorized investment" or words of similar import, as used in any such instrument, shall be taken to mean any investment which is permitted by the terms of sub-division (b) of this Section 35. Unless expressly provided otherwise in any such instrument, any provisions in any such instrument prescribing, defining or limiting the kind of property in which the funds of the trust to which such instrument relates shall be invested shall not apply to any property owned by a testator at the time of his death and delivered to the fiduciary by the personal representative of such testator who has created a trust by his will, or delivered by the settler to the fiduciary of a trust created in a trust agreement, or delivered to the fiduciary pursuant to a court order or other instrument creating or defining the fiduciary's duties and powers, and such fiduciary shall have the right to retain all such property so acquired, subject to the limitations of the standards set forth in sub-division (b) of this Section 35. Unless expressly provided otherwise in any such instrument, a bank or trust company acting as a fiduciary and authorized so to act shall have the right to retain in a trust estate shares of its own capital stock acquired in any manner: referred to above, as effectively as though the instrument creating or defining the fiduciary's duties and powers expressly so provided, subject to the limitations of the standards set forth in sub-division (b) of this Section 35.

Approved April 25, 1951.