Oklahoma § 6-1010 - Common trust funds

§ 6-1010. Common trust funds

A. Any bank or trust company qualified to act as a fiduciary in

this state may:

1. Establish one or more common trust funds for the exclusive

purpose of furnishing investments to itself as fiduciary, to itself

and others as cofiduciaries, or to another bank or trust company

which is a subsidiary of the same bank holding company as fiduciary

or cofiduciary for estates, guardianships, and all other fiduciary

relationships now in existence or hereafter created which require or

authorize investment of trust funds; and

2. Invest funds which it lawfully holds for investment in

interests in such common trust funds, unless:

a.

the investment is prohibited by the instrument,

judgment, decree, or order creating the fiduciary

relationship,

Oklahoma Statutes - Title 6. Banks and Trust Companies

b.

in the case of cofiduciaries, the bank or trust

company fails to procure the consent of its

cofiduciary or cofiduciaries to such investment,

c.

the bank or trust company is not at all times in full

charge of the full management of the fund, or

d.

a cofiduciary or co-trustee has the right to interfere

in the management of the common trust funds.

B. 1. The bank or trust company shall not mingle its own funds

with common trust funds. Each trust, estate or account owning an

interest in such common trust fund shall be deemed to own a

proportionate share of each asset of the fund. In determining

whether the investment by the trust, estate, or account in such

common trust fund is a proper investment for assets held in a

fiduciary account, the bank or trust company may consider the common

trust fund as a whole and shall not, for example, be prohibited from

making the investment if any one or more of the assets of the common

trust fund is nonincome producing or might not otherwise be

considered a proper investment for a fiduciary account.

2. When making investment decisions pursuant to this

subsection, the bank or trust company shall be bound by the

provisions of the Oklahoma Trust Act and the Oklahoma Uniform

Prudent Investor Act, unless otherwise provided by law.

3. Nothing in this subsection shall in any fashion diminish the

responsibility of the bank or trust company to carry out its

responsibilities and duties pursuant to the standard of care of a

fiduciary in handling trust funds.

C. A bank or trust company administering a common trust fund

shall keep proper records, which in addition to all other necessary

and proper matters shall show at all times the proportionate

interest of each trust in the common trust fund, and, at least once

during each period of twelve (12) months, cause an audit to be made

of the common trust fund by auditors responsible only to the board

of directors of the bank or trust company. The report of such audit

shall include a list of the investments comprising the common trust

fund at the time of the audit, which shall show the valuation placed

on each item on such list by the bank or trust company as of the

date of the audit, a statement of purchases, sales and any other

investment changes, and of income and disbursements since the last

audit, and appropriate comments as to any investment in default as

to payment of principal or interest. The reasonable expenses of any

such audit made by independent public accountants may be charged to

the common trust fund. The bank or trust company administering a

common trust fund may charge a reasonable fee for the management of

the common trust fund provided that:

1. The fee is disclosed in the report of the audit of the

common trust fund; and

Oklahoma Statutes - Title 6. Banks and Trust Companies

2. The amount of the fee does not exceed an amount commensurate

with the value of legitimate services of tangible benefit to the

participating fiduciary accounts that would not have been provided

to the accounts were they not invested in the fund.

The bank or trust company shall absorb the costs of establishing

or reorganizing a common trust fund. The bank or trust company

shall send a copy of the latest report of such audit annually to

each person to whom a regular periodic accounting of the trusts

participating in the common trust fund ordinarily would be rendered,

or shall send advice to each such person annually that the report is

available and that a copy will be furnished without charge upon

request.

D. Unless ordered by a court of competent jurisdiction, the

bank or trust company operating such common trust funds is not

required to render a court accounting with regard to such funds; but

it may, by application to the district court, secure approval of

such an accounting after such notice, and on such conditions as the

court may establish.

Added by Laws 1965, c. 161, § 1010. Amended by Laws 1988, c. 166, §

9, emerg. eff. May 24, 1988; Laws 1995, c. 351, § 16, eff. Nov. 1,

1995; Laws 1999, c. 27, § 8, eff. July 1, 1999.