1997 Minnesota Statutes

     48.84 Corporate trustee; trust funds, investment, 
  commingling. 

    Any trust company or state bank which is permitted to 
 exercise trust powers under the provisions of sections 48.37 to 
 48.47 inclusive may invest all moneys received by it in trust in 
 authorized securities, and shall be responsible to the owner or 
 cestui que trust for the validity, regularity, quality, value, 
 and genuineness of these investments and securities so made, and 
 for the safekeeping of the securities and evidences thereof.  In 
 the absence of an express prohibition in the trust instrument, 
 the trustee may acquire and retain securities of any open-end or 
 closed-end management type investment company or investment 
 trust registered under the Federal Investment Company Act of 
 1940.  The fact that the banking institution, or any affiliate 
 of the banking institution, is providing services to the 
 investment company or trust as investment advisor, sponsor, 
 broker, distributor, custodian, transfer agent, registrar, or 
 otherwise, and receiving compensation for the services shall not 
 preclude the trustee from investing in the securities of that 
 investment company or trust.  The banking institution shall 
 disclose to all current income beneficiaries of the trust the 
 rate, formula, and method of the compensation.  This paragraph 
 does not alter the degree of care and judgment required of 
 trustees by section 501B.151.  When special directions are given 
 in any order, judgment, decree, will, or other written 
 instrument as to the particular manner or the particular class 
 or kind of securities or property in which any investment shall 
 be made, it shall follow such directions, and in such case it 
 shall not be further responsible by reason of the performance of 
 such trust.  In all other cases it may invest funds held in any 
 trust capacity in authorized securities using its best judgment 
 in the selection thereof, and shall be responsible for the 
 validity, regularity, quality, and value thereof at the time 
 made, and for their safekeeping.  Whether it be the sole trustee 
 or one of two or more cotrustees, it may invest in fractional 
 parts of, as well as in whole, securities, or may commingle 
 funds for investment.  If it invests in fractional parts of 
 securities or commingles funds for investment, all of the 
 fractional parts of such securities, or the whole of the funds 
 so commingled shall be owned and held by the trust company or 
 state bank in its several trust capacities, and it shall be 
 liable for the administration thereof in all respects as though 
 separately invested; provided, that not more than $100,000, at 
 the cost price of such investments, shall be so invested for any 
 one trust at any one time in fractional parts or as commingled 
 funds for investment by a trust company or state bank having 
 capital and surplus of less than $500,000, unless the authority 
 to invest in fractional parts or as commingled funds be given in 
 the order, judgment, decree, will, or other written instrument 
 governing such trust.  Funds so commingled for investment shall 
 be designated collectively as a common trust fund.  Such trust 
 company or state bank shall maintain such common trust fund in 
 conformity with the rules and regulations prevailing from time 
 to time of that federal governmental agency which regulates the 
 collective investment of trust funds by national banks.  It may, 
 in its discretion, retain and continue any investment and 
 security or securities coming into its possession in any 
 fiduciary capacity.  The foregoing shall apply as well whether a 
 corporate trustee is acting alone or with an individual 
 cotrustee.  

    HIST: (7735) RL s 3040; 1941 c 298 s 1; 1947 c 234 s 1; 1951 c 
 165 s 1; 1965 c 171 s 23; 1992 c 473 s 4; 1996 c 314 s 2