KRS 286.3-230: Common trust funds -- Consent of cofiduciary.

(1) Any trust company or bank empowered to act as a fiduciary under the laws of this

state and subject to examination by state or federal banking authorities may

establish and maintain one (1) or more common trust funds for the collective

investment of funds held in any fiduciary capacity by such trust company or bank or

by an affiliate of the trust company or bank including, without limitation, funds held

as agent where the trust company, bank, or affiliate exercises investment discretion

and assumes fiduciary responsibilities.

(2) Before establishing a common trust fund as provided in subsection (1) of this

section, the trust company or bank shall file with the commissioner a statement of

the plan under which it proposes to establish, maintain, operate, and ul timately

liquidate the trust fund, and shall secure the written approval of the plan by the

commissioner.

(3) After such a trust fund has been established, it may be modified or amended by

filing with the commissioner a statement setting forth the proposed modification or

amendment, and securing the written approval of the change by the commissioner.

(4) The bank, trust company, or affiliate shall at all times maintain definite records

showing all securities and properties held in such fund.

(5) The trust c ompany, bank, or affiliate may invest funds held by it in any fiduciary

capacity in one (1) or more common trust funds established as provided in

subsection (1) of this section, or one (1) or more common trust funds wherever

located established, owned, or controlled by an affiliate of the trust company, bank,

or affiliate so long as:

(a) The investment is not specifically prohibited by the instrument, judgment

decree, or order creating the fiduciary relationship; and

(b) In the case of cofiduciaries, the tr ust company, bank, or affiliated bank

procures the written consent of its cofiduciary or cofiduciaries to the

investment, which consent the cofiduciary or cofiduciaries are hereby

authorized to grant.

(6) As used in subsection (1) of this section, "affilia te of the trust company or bank"

means any trust company, bank, or other entity that controls, is controlled by, or is

under common control with the trust company, bank, or other entity.