PARRIS N. GLENDENING, Governor                             Ch. 607

(v) 30% for [1998 and 1999] 2001 AND 2002: [and]

(vi) [40%] 35% for [2000] 2003 AND 2004; AND

(VII) 40% FOR 2005 and all subsequent calendar years.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1997.

Approved May 22, 1997.

CHAPTER 607

(Senate Bill 632)

AN ACT concerning

Estates and Trusts - Duties of Trustee

FOR the purpose of limiting the duties of a trustee regarding the acquisition, retention,
or ownership of a contract of insurance life insurance in the trust on the life of the
grantor of the trust or on the lives of the grantor and the grantor's spouse or
children, children, or grandchildren; and providing for the application of this Act.

BY adding to

Article - Estates and Trusts

Section 15-115

Annotated Code of Maryland

(1991 Replacement Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Estates and Trusts

15-115.

NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND EXCEPT AS
OTHERWISE PROVIDED IN THE GOVERNING INSTRUMENT, THE DUTIES OF A
TRUSTEE REGARDING THE ACQUISITION, RETENTION, OR OWNERSHIP OF A
CONTRACT OF INSURANCE ON THE LIFE OF THE GRANTOR OF THE TRUST, OR ON
THE LIVES OF THE GRANTOR AND THE GRANTOR'S SPOUSE OR CHILDREN,
CHILDREN, OR GRANDCHILDREN, INCLUDE A DUTY OF LOYALTY AND FAIR DEALING,
BUT DO NOT INCLUDE A DUTY TO:

(1)     DETERMINE WHETHER ANY CONTRACT OF INSURANCE LIFE
INSURANCE IN THE TRUST IS OR REMAINS A PROPER INVESTMENT;

(2)     DIVERSIFY THE INVESTMENT; OR

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