HARRY HUGHES, Governor

221

trust company to use independent nominees that
cannot be supervised by the trust company.

3-519. INVESTMENT OF FUND ASSETS.

A TRUST COMPANY MAY INVEST THE ASSETS OF A COMMON TRUST
FUND IN ANY INVESTMENT IN WHICH A FIDUCIARY WHO IS NOT
RESTRICTED BY INVESTMENT LIMITATIONS UNDER THE GOVERNING
INSTRUMENT OR AUTHORIZATION MAY INVEST UNDER THE LAWS OF
THIS STATE.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, § 62(6).

The phrase "under the governing instrument or
authorization" is substituted for "stipulated
investment specifications" for clarity and
uniformity.

3-520. TRANSFER OF ASSETS FROM A COMMON TRUST FUND.

(A)   PRESUMPTION OF RIGHT TO TRANSFER.

A TRANSFER AGENT OR A TRANSFEREE OF AN ASSET HELD IN
THE NAME OF A TRUSTEE OF A COMMON TRUST FUND MAY PRESUME
CONCLUSIVELY THAT THE TRUSTEE HAS AN ABSOLUTE RIGHT TO
TRANSFER OR ASSIGN THE ASSET.

(B)   LIABILITY.

(1)       A TRANSFER AGENT OR A TRANSFEREE OF AN ASSET
HELD IN THE NAME OF A TRUSTEE OF A COMMON TRUST FUND IS NOT
CHARGEABLE WITH ANY DUTY IN RELATION TO THE FUND, A
PARTICIPATING ACCOUNT, OR ANY BENEFICIARY OF A PARTICIPATING
ACCOUNT.

(2)       A TRANSFEREE OF AN ASSET HELD IN THE NAME OF
A TRUSTEE OF A COMMON TRUST FUND IS NOT LIABLE FOR THE
APPLICATION OF ANY PURCHASE MONEY PAID TO THE TRUSTEE.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 11, §
62(9), except the first. clause of that
subsection.

GENERAL REVISOR'S NOTE:

Present Art. 11, § 62(16) is deleted as unnecessary in
light of the severability provision in Art. 1, § 23 of the
Code.

SUBTITLE 6. MISCELLANEOUS REGULATIONS.

3-601. MAXIMUM LIABILITIES OF PERSON TO COMMERCIAL BANK.

(A) SCOPE OF SECTION.