Virginia Administrative Code
Title 10 - FINANCE AND FINANCIAL INSTITUTIONS
Agency 5 - STATE CORPORATION COMMISSION
Chapter 190 - COMMON TRUST FUNDS
Section 10VAC5-190-30 - Investment authorization

Universal Citation: 0 VA Admin Code 5-190-30

Current through Register Vol. 41, No. 3, September 23, 2024

To the extent not otherwise prohibited by Virginia law, funds or other property received or held by a bank as fiduciary may be invested collectively as follows:

1.

a. In a single real estate loan, a direct obligation of the United States, or an obligation fully guaranteed by the United States, or in a single, fixed-amount security, obligation, or other property (real, personal, or mixed) of a single issuer; or

b. On a short-term basis, in a variable-amount note of a borrower of prime credit. However, such note shall be maintained by the bank on its premises and may be utilized by it only for investment of moneys held in its trust department accounts.

Furthermore, a bank may not own any participation in a loan or obligation authorized for investment under subdivisions 1a or 1b and may have no interest in any investment therein except in its capacity as fiduciary.

2. In a common trust fund maintained by the bank for the collective investment of cash balances received or held by a bank in its capacity as trustee, executor, administrator, or guardian, which balances the bank considers to be individually too small to be invested separately to advantage. The total investment for such fund must not exceed $100,000; the number of participating accounts is limited to 100, and no participating account may have an interest in the fund in excess of $10,000.

In applying these limitations, if two or more accounts are created by the same person or persons, and 1/2 or more of the income or principal of each account is presently payable or applicable to the use of the same person or persons, such accounts shall be considered as one. No fund may be established or operated under this subdivision 2 for the purpose of avoiding any provision of 10VAC5-190-20.

3. In any investment specifically authorized by court order, or authorized by the instrument creating the fiduciary relationship in the case of trusts created by a corporation, its subsidiaries and affiliates, or by several individual settlers who are closely related. However, such investment may not be made under this subdivision 3 for the purpose of avoiding the provisions of 10VAC5-190-20.

4. In such other manner, consistent with applicable law, as may be approved in writing by the Commissioner of Financial Institutions.

The foregoing authorizations are not exclusive; rather they are in addition to such other investment authorizations as are provided in Virginia law.

Statutory Authority

§ 6.2-1009 of the Code of Virginia.

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