HB404: relative to common trust funds.

CHAPTER 125

HB 404 - FINAL VERSION

2003 SESSION

03-0425

06/01

HOUSE BILL 404

AN ACT relative to common trust funds.

SPONSORS: Rep. Hunt, Ches 28; Sen. Kenney, Dist 3

COMMITTEE: Commerce

ANALYSIS

This bill allows a New Hampshire bank to provide its common trust funds for investments by an affiliated bank located either in-state or out-of-state. It also allows a New Hampshire bank to invest funds in a common trust fund established by an affiliated bank located either in New Hampshire or in another state.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0425

06/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to common trust funds.

Be it Enacted by the Senate and House of Representatives in General Court convened:

125:1 Establishment and Use of Common Trust by Bank Holding Company Affiliates Located Both In-State and Out-of-State. Amend RSA 391:1-a to read as follows:

391:1-a Establishment and Use of Common Trust by Bank Holding Company Affiliates. Any such bank or trust company which is an affiliate of a bank holding company, as the term "affiliate" is defined by the federal Bank Holding Company Act of 1956, as amended, or of a savings and loan holding company as defined by the federal Savings and Loan Holding Company Act, as amended, may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, to other affiliates of the same holding company qualified to act as fiduciary in this state [as fiduciary] or in any other state, or to itself and others as co-fiduciaries, or to such other affiliates and others as co-fiduciaries. Subject to the limitations upon the investment of funds held in a fiduciary capacity in common trust funds contained in RSA 391:1, [the] any such bank or trust company [affiliate of a holding company] establishing such common trust funds and other affiliates of the same holding company qualified to act as fiduciary in this state or in any other state may, as such fiduciary or co-fiduciary, invest funds which it lawfully holds for investment [in interest] in such common trust funds. Any such bank or trust company may also invest funds which it holds in a fiduciary capacity in any collective investment fund or common trust fund established by such other affiliates of the same holding company under the laws of any state; provided, however, that any such investment is not prohibited by the instrument, judgment, decree, or order creating the fiduciary relationship. [The] Any bank or trust company establishing, maintaining, or so utilizing any [such] common trust fund established under this chapter shall comply with and be subject to all of the provisions of this chapter as though such bank or trust company and the other [banks or trust companies] affiliates participating in such common trust fund [or funds] were one and the same corporate entity. Any person acting as a co-fiduciary with any such bank or trust company is hereby authorized to consent to the investment in interest in a common trust fund or funds created hereunder.

125:2 Effective Date. This act shall take effect 60 days after its passage.

(Approved: June 12, 2003)

(Effective Date: August 11, 2003)