HARRY HUGHES, Governor

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The present law requires a fund plan to include
statements of the provisions contained in this
section. A thorough reading of the present law
as a whole indicates that these provisions also
are intended to be affirmative, substantive
requirements for common trust funds. Therefore,
the revision makes these requirements express.

The term "valuation date" is defined in §
3-501(e) of this subtitle.

As to the requirement that these provisions be
stated in a fund plan, see § 3-505 of this
subtitle.

3-514. EVIDENCE OF PARTICIPATION IN FUND.

(A)   CERTIFICATE OF PARTICIPATION.

(1)   A TRUST COMPANY THAT ADMINISTERS A COMMON
TRUST FUND MAY ISSUE A CERTIFICATE OF PARTICIPATION FOR EACH
PARTICIPATING ACCOUNT.

(2)   A CERTIFICATE OF PARTICIPATION IS NOT
ASSIGNABLE AND MAY NOT BE ISSUED IN ANY FORM THAT PURPORTS
TO BE NEGOTIABLE OR ASSIGNABLE.

(B)   STATEMENT OF OFFICES.

IN ANY REPORT OR ACCOUNTING REQUIRED FROM THE TRUST
COMPANY BY LAW, A STATEMENT THAT IS SIGNED AND VERIFIED BY
ONE OF ITS OFFICERS AS TO THE EXISTENCE, EXTENT, AND VALUE
OF A PARTICIPATION IN A COMMON TRUST FUND THAT IT
ADMINISTERS MAY BE ACCEPTED AS EVIDENCE OF THOSE FACTS BY
ANY COURT, TRUST CLERK, OR SUPERVISORY AUTHORITY.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, § 62(8).

In subsection (a) (2) of this section, the phrase
"is not assignable" is added to make express that
which presently only is implied in the law.

In subsection (b) of this section, the phrase
"signed and verified by one of its officers" is
substituted for "any statement ... under oath of
an appropriate officer". See § 1—202 of this
article.

3-515. FUND MANAGEMENT; MANAGEMENT FEES.

(A) EXCLUSIVE CONTROL.

THE TRUST COMPANY THAT ESTABLISHES A COMMON TRUST FUND
HAS EXCLUSIVE MANAGEMENT AND CONTROL OF THE FUND, INCLUDING
THE SOLE RIGHT TO TRANSFER, CHANGE, OR DISPOSE OF THE ASSETS
IN THE FUND.