Current through Register Vol. 54, No. 45, November 9, 2024
Section 15.9 - Fiduciary capacity of an institution(a) An institution administering a collective investment fund shall not have any interest in such fund, other than its fiduciary capacity, but funds held by an institution as fiduciary for its own employes may be invested in such a fund.(b) An institution administering a collective investment fund shall not make any loans on the security of a participation in such fund.(c) If for any reason the institution acquires an interest in a participation in such fund, the participation shall be withdrawn on the first date on which such a withdrawal can be effected.(d) An unsecured advance to an account holding a participation shall not be deemed to constitute the acquisition of an interest by the institution until the time of the next withdrawal.(e) The institution may purchase for its own account from a collective investment fund any defaulted mortgage held by such fund. A purchase of such a mortgage may be made by the institution if its board of directors agrees that the cost of segregation of the mortgage would be greater than the difference between its market value and its principle amount plus interest and penalty charges due. If the institution elects to purchase a defaulted mortgage, it shall pay the market value or the sum of principal, interest and penalty charges, whichever is greater.