Ohio § 2109.372

§ 2109.372.

(A) As used in this section: (1) “ Short term trust-quality investment fund ” means a short term investment fund that meets both of the following conditions: (a) The fund may be either a collective investment fund established in accordance with section 1111.14 of the Revised Code or a registered investment company, including any affiliated investment company whether

or not the fiduciary has invested other funds held by it in an agency or other nonfiduciary

capacity in the securities of the same registered investment company or affiliated

investment company. (b) The fund is invested in any one or more of the following manners: (i) In obligations of the United States or of its agencies; (ii) In obligations of one or more of the states of the United States or their political

subdivisions; (iii) In obligations of foreign governments or states; (iv) In variable demand notes, corporate money market instruments including, but not limited

to, commercial paper rated at the time of purchase in either of the two highest classifications

established by at least one nationally recognized statistical rating organization; (v) Deposits in banks, savings banks, or savings and loan associations, whose deposits

are insured by the federal deposit insurance corporation, or in credit unions insured

by the national credit union administration or by a credit union share guaranty corporation

established under Chapter 1761. of the Revised Code, if the rate of interest paid

on those deposits is at least equal to the rate of interest generally paid by those

banks, savings banks, savings and loan associations, or credit unions on deposits

of similar terms or amounts; (vi) In fully collateralized repurchase agreements or other evidences of indebtedness

that are of trust quality and are payable on demand or have a maturity date consistent

with the purpose of the fund and the duty of fiduciary prudence. (2) “ Registered investment company ” means any investment company that is defined in and registered under sections 3

and 8 of the “Investment Company Act of 1940,” 54 Stat. 789, 15 U.S.C.A. 80a-3 and 80a-8 . (3) “Affiliated investment company” has the same meaning as in division (E)(1) of section 1111.13 of the Revised Code . (B) A fiduciary is not required to invest cash that belongs to the trust and may hold

that cash for the period prior to distribution if either of the following applies: (1) The fiduciary reasonably expects to do either of the following: (a) Distribute the cash to beneficiaries of the trust on a quarterly or more frequent

basis; (b) Use the cash for the payment of debts, taxes, or expenses of administration within

the ninety-day period following the receipt of the cash by the fiduciary. (2) Determined on the basis of the facilities available to the fiduciary and the amount

of the income that reasonably could be earned by the investment of the cash, the amount

of the cash does not justify the administrative burden or expense associated with

its investment. (C) If a fiduciary wishes to hold funds that belong to the trust in liquid form and division

(B) of this section does not apply, the fiduciary may so hold the funds as long as

they are temporarily invested as described in division (D) of this section. (D)(1) A fiduciary may make a temporary investment of cash that the fiduciary may hold uninvested

in accordance with division (B) of this section, and shall make a temporary investment

of funds held in liquid form pursuant to division (C) of this section, in any of the

following investments, unless the governing instrument provides for other investments

in which the temporary investment of cash or funds is permitted: (a) A short term trust-quality investment fund; (b) Direct obligations of the United States or of its agencies; (c) A deposit with a bank, savings bank, savings and loan association, or credit union,

including a deposit with the fiduciary itself or any bank subsidiary corporation owned

or controlled by the bank holding company that owns or controls the fiduciary, whose

deposits are insured by the federal deposit insurance corporation, if the rate of

interest paid on that deposit is at least equal to the rate of interest generally

paid by that bank, savings bank, savings and loan association, or credit union on

deposits of similar terms or amounts. (2) A fiduciary that makes a temporary investment of cash or funds pursuant to division

(D)(1) of this section may charge a reasonable fee for the services associated with

that investment.  The fee shall be in addition to the compensation to which the fiduciary is entitled

for ordinary fiduciary services. (3) Fiduciaries that make one or more temporary investments of cash or funds pursuant

to division (D)(1) of this section shall provide to the beneficiaries of the trusts

involved, that are currently receiving income or have a right to receive income, a

written disclosure of their temporary investment practices and, if applicable, the

method of computing reasonable fees for their temporary investment services pursuant

to division (D)(2) of this section.  Fiduciaries may comply with this requirement in any appropriate written document,

including, but not limited to, any periodic statement or account. (4) A fiduciary that makes a temporary investment of cash or funds in an affiliated investment

company pursuant to division (D)(1)(a) of this section shall, when providing any periodic

account statements of its temporary investment practices, report the net asset value

of the shares comprising the investment in the affiliated investment company. (5) If a fiduciary that makes a temporary investment of cash or funds in an affiliated

investment company pursuant to division (D)(1)(a) of this section invests in any mutual

fund, the fiduciary shall provide to the beneficiaries of the trust involved, that

are currently receiving income or have a right to receive income, a written disclosure,

in at least ten-point boldface type, that the mutual fund is not insured or guaranteed

by the federal deposit insurance corporation or by any other government agency or

government-sponsored agency of the federal government or of this state.