Browse Arkansas Code titles and sections
28-71-106. Investments authorized.
Arkansas Code — all titles (historical 2020) · legal_authorities
28-71-106. Investments authorized.
(a) Within the limitations of the standard set forth in § 28-71-105, a fiduciary is authorized to acquire and retain every kind of real, personal, or mixed property and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate obligations, preferred or common stocks, shares or interests in common trust funds, and securities of any open-end or closed-end management-type investment company or investment trust registered under the Federal Investment Company Act of 1940, as amended, which persons of prudence, discretion, and intelligence acquire or retain for their own account.
(b)(1) Whenever a fiduciary is authorized or required by the instrument, judgment, decree, or order establishing the fiduciary relationship to invest funds in specifically described securities, the fiduciary may, unless expressly prohibited by such an instrument, judgment, decree, or order, invest such funds in any investment company or investment trust described in subsection (a) of this section, the portfolio of which is limited to such specifically described securities and to repurchase agreements fully collateralized by such specifically described securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian.
(2) Notwithstanding any other provision of state law, this subsection shall apply to all funds deposited with or controlled by any bank trustee acting in a fiduciary capacity in connection with the issuance, sale or redemption of bonds, notes, and other certificates of indebtedness.
(c) Unless expressly prohibited by the instrument, judgment, decree, or order establishing the fiduciary relationship,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-71-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
Issuing source page ↗
Authority boundary: historical statutory source snapshot not current law.
Open the recorded source website ↗
Record provenance
Stable record: arkansas_code:legal_authorities:28-71-106
Source file: gov.ar.code.title.28.odt
Pages: Not recorded – Not recorded
Passage SHA-256: d75b69466ba2cb8ba979e0e97c74e8c25d794845533260f94dfb5836e3da8723
Source location: content.xml paragraph 12188
Stored source content
28-71-106. Investments authorized.
(a) Within the limitations of the standard set forth in § 28-71-105, a fiduciary is authorized to acquire and retain every kind of real, personal, or mixed property and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate obligations, preferred or common stocks, shares or interests in common trust funds, and securities of any open-end or closed-end management-type investment company or investment trust registered under the Federal Investment Company Act of 1940, as amended, which persons of prudence, discretion, and intelligence acquire or retain for their own account.
(b)(1) Whenever a fiduciary is authorized or required by the instrument, judgment, decree, or order establishing the fiduciary relationship to invest funds in specifically described securities, the fiduciary may, unless expressly prohibited by such an instrument, judgment, decree, or order, invest such funds in any investment company or investment trust described in subsection (a) of this section, the portfolio of which is limited to such specifically described securities and to repurchase agreements fully collateralized by such specifically described securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian.
(2) Notwithstanding any other provision of state law, this subsection shall apply to all funds deposited with or controlled by any bank trustee acting in a fiduciary capacity in connection with the issuance, sale or redemption of bonds, notes, and other certificates of indebtedness.
(c) Unless expressly prohibited by the instrument, judgment, decree, or order establishing the fiduciary relationship, a fiduciary may invest funds in certificates of deposit and savings accounts of any state bank or national bank whose deposits are insured by the Federal Deposit Insurance Corporation and whose main office is in this state, including itself, if the fiduciary is a bank.
(d) Whenever the express terms or limitations set forth in any instrument use the terms “legal investment” or “authorized investment” or words of similar import, the words shall be taken to mean any investment authorized or permitted by this section.
(e) Consistent with the trustee's investment powers, a trustee may make temporary investments of funds in short-term interest-bearing obligations or deposits, or other short-term liquid investments. Trustees are authorized to charge reasonable fees for this service in addition to other compensation to which the trustee is entitled.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Arkansas Code — all titles (historical 2020) · legal_authorities
28-71-105. Standard of judgment and care — Prudent investor rule.
In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property held in a fiduciary capacity, other than trusts subject to the prudent investor rule as set forth in the Arkansas Trust Code, § 28-73-101 et seq., the fiduciary shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-71-105
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 28-71-105. This identifies an authority to review, not proof of applicability.