CHAPTER 203
S.P. 278 - L.D. 886
An Act Concerning Trust Investments by Trustees in Affiliated Securities and Bonds
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 18-A MRSA §7-408, sub-§2, ¶¶A and B, as enacted by PL 1993, c. 213, §1, are amended to read:
A. If the investment is prohibited by the instrument, judgment, decree or order creating the fiduciary relationship; or
B. Unless, in the case of cofiduciaries, the association, corporation or financial institution or an affiliate procures the consent of its cofiduciaries to the investment; or.
Sec. 2. 18-A MRSA §7-408, sub-§2, ¶C, as enacted by PL 1993, c. 213, §1, is repealed.
Sec. 3. 18-A MRSA §7-408, sub-§3, as enacted by PL 1993, c. 213, §1, is repealed.
Sec. 4. 18-A MRSA §7-408, sub-§4 is enacted to read:
4. Disclosures. The disclosures required by this section must be provided by mailing a statement or letter to the last known address of each person to whom statements for the fiduciary estate are provided. The disclosures may be provided separately or as part of other documents of the fiduciary estate. If made part of other documents of the fiduciary estate, the disclosures must be printed clearly and conspicuously on these documents.
A. A trustee purchasing bonds or securities pursuant to this section shall disclose in writing any capacities in which the trustee or an affiliate acts for the issuer of those bonds or securities and that the trustee or an affiliate may have an interest in the underwriting or distribution of those bonds or securities.
B. If the securities purchased are shares of an investment company subject to this section, the trustee shall disclose the services provided and the receipt of compensation for those services before the initial purchase and annually.
Effective September 19, 1997, unless otherwise indicated.
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