{"data":{"id":"us-ky/krs-386.020","jurisdiction":"us-ky","citation":"KRS 386.020","heading":"Authorized investments of trust funds -- Fiduciary to account for profits --","body":"Section not applicable to trustees.\n(1) Any fiduciary holding funds for loan or investment may invest them in:\n(a) Bonds or other interest-bearing obligations of the federal government;\n(b) Bonds, state warrants, and other interest-bearing obligations of this state;\n(c) Obligations issued separately or collectively by or for federal land banks,\nfederal intermediate credit banks, and banks for cooperatives under the Act of\nCongress known as the Farm Credit Act of 1971, 85 Stat. 583, 12 U.S.C. sec.\n2001 and amendments thereto;\n(d) Notes and bonds secured by mortgage or trust deed insured by the federal\nhousing administrator, obligations issued or insured by the federal housing\nadministrator, and securities issued by national mortgage associations;\n(e) Obligations representing loans and advances of credit that are eligible for\ncredit insurance by the federal housing administrator, and the fiduciary may\nobtain such insurance;\n(f) Loans secured by real property or leasehold, that the federal housing\nadministrator insures or makes a commitment to insure, and the fiduciary may\nobtain such insurance;\n(g) Real estate mortgage notes, bonds, and other interest -bearing or dividend -\npaying sec urities, including securities of any open -end or closed -end\nmanagement type investment company or investment trust registered under\nthe Federal Investment Company Act of 1940 or units of common trust funds\nmanaged by the fiduciary, which would be regarded by prudent businessmen\nas a safe investment. The fact that the fiduciary is providing services to the\nforegoing investment company or trust as investment advisor, custodian,\ntransfer agent, registrar, or otherwise shall not preclude the fiduciary from\ninvesting in the securities of such investment or trust;\n(h) Real estate, after obtaining the approval of the District Court for such\ninvestment;\n(i) Life insurance, endowment, and annuity contracts issued by legal reserve\ncompanies authorized to do business i n this state, after obtaining the approval\nof the District Court for such investment. Said fiduciary may select any\noptional settlement provided in a policy maturing by death or as an\nendowment;\n(j) Notes, other interest -bearing obligations, and purchases of participations in\nsuch instruments, that are guaranteed in whole or in part by the United States\nof America or by any agency or instrumentality thereof;\n(k) Certificates of deposit and savings accounts of any state or national bank\nwhose deposits are in sured by the Federal Deposit Insurance Corporation and\nwhose main office is in this state, including itself, if such fiduciary is a bank.\nAny portion of such investments that is not insured by the Federal Deposit\nInsurance Corporation shall be fully secured by:\n1. An irrevocable letter of credit issued by the United States of America or\nby an agency or instrumentality thereof;\n2. A pledge of securities named in this subsection as collateral;\n3. A surety bond; or\n4. A combination of such irrevocable letters of credit, securities, and surety\nbonds; and\n(l) United States government securities or United States government agency\nsecurities, the payment of the principal and interest on which the full faith and\ncredit of the United States is pledged, said investments being made under the\nterms of a repurchase agreement between the fiduciary and any state or\nnational bank whose main office is in this state, including itself, if such\nfiduciary is a bank.\n(2) Fiduciaries holding funds for loan or investment may make loans with the securities\nnamed in subsection (1) of this section as collateral.\n(3) The fiduciary shall account for all interest or profit received.\n(4) This section shall not apply to trustees.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43164","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"dd7f3d5bb09acedf73ee28c9b5eb4b953732769d10ce06bb88d62c8ca6a70e11","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.010","next":"us-ky/krs-386.023"},"notice":"GroundRules: Original legal text. Not legal advice."}