New York Banking Law

Article 12-A,  Mutual Trust Investment Companies

Section 550. Incorporation; organization certificate.
        551. Investment powers.
        552. Accountability.
        553. Investment by fiduciaries in shares.

  S 550. Incorporation; organization certificate. When authorized by the
superintendent as provided in article two of this chapter, five or more
persons may form a corporation to be known as a mutual trust investment
company. Such persons shall subscribe and acknowledge and submit to the
superintendent of banks at his office an organization certificate in
duplicate which shall specifically state:
  1. The name by which the mutual trust investment company is to be
known and the investment purpose of its formation under the following
section five hundred fifty-one.
  2. The place where its principal office is to be located.
  3. The amount of its capital stock and the number of shares into which
such capital stock shall be divided.
  4. The full name, residence and post-office address of each of the
incorporators and the number of shares subscribed for by each.
  5. The term of its existence, which may be perpetual.
  6. The number of its directors, which shall not be less than five and
the names and addresses of the persons who shall be its directors until
the first annual meeting of stockholders.
  Such certificate may provide for the manner in which the stock of the
corporation may be transferred and for the number of directors necessary
to constitute a quorum.
  When the superintendent shall have endorsed his approval on the
organization certificate as provided in article two of this chapter, the
corporate existence shall begin.

  S 551. Investment powers. A mutual trust investment company may invest
in such investments as the company may select in its discretion.
  The amount of stock of any corporation which may be held by any mutual
trust investment company shall not exceed five per centum of the number
of shares of stock of such corporation outstanding at the time of
investment by such mutual trust investment company. 

  S 552. Accountability. A mutual trust investment company shall not be
responsible for ascertaining the investment powers of any fiduciary who
may purchase its stocks or shares and shall not be liable for accepting
funds from a fiduciary in violation of the restrictions in any will,
deed or other instrument in the absence of actual knowledge of such
violation, and shall be accountable only to the fiduciaries who are the
owners of its stocks or shares.

  S 553. Investment by fiduciaries in shares.  Unless the instrument or
the order, decree or judgment under which moneys are held in a fiduciary
capacity prohibits such investment, an eligible fiduciary or fiduciaries
may invest and reinvest moneys so held in shares of stock of one or more
mutual trust investment companies as it may determine.
  The net aggregate amount of moneys of any estate, trust or fund
invested in shares of a mutual trust investment company shall not at any
time exceed the maximum amount permitted by such rules and regulations
as may be promulgated by the banking board.
  "An eligible fiduciary or fiduciaries" shall be deemed to mean a trust
company or a national banking association having its principal office
within the state of New York and acting either as sole fiduciary or with
one or more co-fiduciaries.