KRS 386.540: Regulation of investments.

Trust institutions and foreign trust institutions, as defined by KRS 386.510, acting in a

fiduciary capacity and for fiduciary purposes, may, if exercising due care as a prudent

investor, and with the consent of any co -fiduciary, invest and reinvest funds held in such

fiduciary capacity in the shares of stock of one (1) or more fiduciary investment

companies, except where the will, trust indenture or other instrument under which such

trust institution or foreign trust institution acts, prohibits such invest ment, provided the

fiduciary investment company shall by its articles of incorporation issued and granted in

conformity with the Kentucky Business Corporation Act have and possess the corporate

powers required by KRS 386.510 to 386.590 and be subject to th e limitations set forth by

KRS 386.510 to 386.590; provided, further, that no such trust institution or foreign trust

institution shall invest in the stock of a fiduciary investment company on behalf of any

estate, trust or fund administered by such trust institution or foreign trust institution a sum

or amount which would result in such estate, trust or fund having a total investment in

such stock in excess of the maximum amount or percentage that might be invested by

such estate, trust or fund, under the regulations of the federal or state agency charged with

supervising such trust institution or foreign trust institution, in any common trust fund

having total assets equal to the total assets of the fiduciary investment company as

increased by the proposed investment. No trust institution or foreign trust institution shall

invest in the stock of a fiduciary investment company if, immediately after such

investment and as a consequence thereof, it would own more than 25 percent of the

voting securities of such fiduciary investment company which would then be outstanding.