H*3476 Session 109 (1991-1992)
H*3476(Rat #0229, Act #0158 of 1991) General Bill, By R.A. Barber, P.M. Burch,
J.D. Cole, R.S. Corning, L.L. Elliott, J.V. Gregory, Haskins, J.H. Hodges,
M.F. Jaskwhich, J.C. Johnson, Koon, J.G. Mattos, J. Rama, Scott, C.L. Sturkie,
Wilkins and J.B. Williams
A Bill to amend Section 62-7-302, as amended, Code of Laws of South Carolina,
1976, relating to the duties and responsibilities of a fiduciary, so as to
authorize fiduciaries to invest in mutual funds sponsored by affiliated
organizations.
02/12/91 House Introduced and read first time HJ-3
02/12/91 House Referred to Committee on Judiciary HJ-3
04/17/91 House Committee report: Favorable Judiciary HJ-15
04/25/91 House Debate adjourned until Tuesday, April 30, 1991 HJ-7
05/01/91 House Read second time HJ-12
05/02/91 House Read third time and sent to Senate HJ-19
05/07/91 Senate Introduced and read first time SJ-25
05/07/91 Senate Referred to Committee on Judiciary SJ-25
05/22/91 Senate Committee report: Favorable with amendment
Judiciary SJ-12
05/30/91 Senate Read second time SJ-66
05/30/91 Senate Ordered to third reading with notice of
amendments SJ-66
06/05/91 Senate Amended SJ-78
06/05/91 Senate Read third time and returned to House with
amendments SJ-78
06/06/91 House Concurred in Senate amendment and enrolled HJ-2
06/06/91 Ratified R 229
06/12/91 Signed By Governor
06/12/91 Effective date 06/12/91
06/12/91 Act No. 158
07/02/91 Copies available
(A158, R229, H3476)
AN ACT TO AMEND SECTION 62-7-302, AS AMENDED, CODE
OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES
AND RESPONSIBILITIES OF A FIDUCIARY, SO AS TO AUTHORIZE
FIDUCIARIES TO INVEST IN MUTUAL FUNDS SPONSORED BY
AFFILIATED ORGANIZATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Fiduciary may invest in certain mutual funds
SECTION 1. Section 62-7-302(a) of the 1976 Code, as last amended by
Act 521 of 1990, is further amended by adding:
"(6) invest and reinvest in the securities of an open-end or
closed- end management investment company or of an investment trust
registered under the Investment Company Act of 1940, as amended. A
bank or trust company may invest in these securities even if the bank or
trust company, or an affiliate of the bank or trust company, provides
services to the investment company or investment trust such as that of an
investment advisor, custodian, transfer agent, registrar, sponsor, distributor,
manager, or otherwise, and receives reasonable remuneration for those
services."
Powers of fiduciary
SECTION 2. Section 62-7-302(a)(4) and (5) of the 1976 Code, as last
amended by Act 521 of 1990, is further amended to read:
"(4) retain the securities into which corporate securities owned by
the fiduciary may be converted or which may be derived therefrom as a
result of merger, consolidation, stock dividends, splits, liquidations, and
similar procedures (and may exercise by purchase or otherwise any rights,
warrants, or conversion features attaching to any such securities);
(5) purchase or otherwise acquire and retain any security underwritten
by a syndicate, even if the fiduciary or its affiliate (defined as any entity
which owns or is owned by, in whole or in part, the fiduciary or is owned
by the same entity that owns the fiduciary) participates or has participated
as a member of the syndicate, provided the fiduciary does not purchase the
security from itself, its affiliate, or from another member of the
underwriting syndicate or its affiliate pursuant to an implied or express
reciprocal agreement between the fiduciary or its affiliate, and such other
member or its affiliate, to purchase all or part of each other's underwriting
participation commitment within the syndicate. The propriety of an
investment decision is to be determined by what the fiduciary knew or
should have known at the time of the decision about the inherent nature and
expected performance of the investment, the attributes of the portfolio, the
general economic conditions, the anticipated tax consequences of the
investment, the anticipated duration of the fiduciary account, the needs and
objectives of the beneficiaries of the account, and other pertinent
circumstances as they existed at the time of the decision. Any
determination of liability for investment performance shall consider not
only the performance of a particular investment but also the performance of
the portfolio as a whole. Any fiduciary acting under a governing
instrument shall not be liable to anyone whose interests arise from that
instrument for the fiduciary's good faith reliance on the express provisions
of such instrument. The standards set forth in this section may be
expanded, restricted, or eliminated by express provisions in a governing
instrument; and".
Time effective
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 12th day of June, 1991. |