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 1988 Official Edition, is hereby amended by striking out subsection 11 and inserting in place thereof the following two subsections:-

11. Any association or corporation authorized to do a banking business and to exercise trust powers in the commonwealth while acting as a fiduciary is authorized, in the absence of an express provision to the contrary in the instrument, judgment, decree or order creating a trust or other fiduciary relationship, to purchase for the fiduciary estate, directly from underwriters or in the secondary market, bonds or other securities which are underwritten by such association or corporation or an affiliate thereof or by any syndicate which includes such association or corporation or an affiliate thereof; provided, however, that (1) nothing in this section shall affect the degree of prudence and judgment which is required of fiduciaries generally under the common law of the commonwealth (2) any such bonds or securities so purchased shall have sufficient liquidity and quality to satisfy the principles of fiduciary investment and (3) such corporation or association discloses to the beneficiaries of its fiduciary accounts the fact that it or an affiliate may have an interest in the underwriting of such bonds or securities.

12. To perform any and all functions and engage in any and all business customarily engaged in by trust departments of banks in this commonwealth, provided that the same is not expressly prohibited by the laws of this commonwealth.