Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 3 of chapter 167G of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by inserting after subsection 9A the following subsection:-

9B. Any association or corporation authorized to do a banking business and to exercise trust powers in the commonwealth, or any other person receiving and holding property in a fiduciary capacity in the commonwealth, is authorized, in the absence of an express provision to the contrary, whenever a governing instrument or order directs, requires, authorizes or permits investment in United States government obligations, to invest in such obligations, either directly or in the form of securities of, or other interests in, any open-end or closed-end management type investment company or investment trust registered under the provisions of 15 USC section 80(a)-1 et seq., provided that the portfolio of such investment company or investment trust is limited to United States government obligations and to repurchase agreements fully collateralized by such obligations, and provided further that any such investment company or investment trust shall take delivery of such collateral, either directly or through an authorized custodian. Nothing in this subsection shall alter the power, granted by section five, of a bank's trust department to invest funds or assets which it may receive and hold in a fiduciary capacity, nor shall anything in this subsection affect the degree of prudence and judgment which is required of fiduciaries generally under the common law of the commonwealth.