6-871. Establishment of common trust funds

A. Any bank, savings and loan association or trust company qualified to act as a fiduciary in this state may establish and administer common trust funds composed of property permitted by law for the investment of trust funds for the purpose of furnishing investments to any one or more of the following:

1. Itself as fiduciary.

2. Itself and others, as cofiduciaries.

3. Any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, as fiduciary.

4. Any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, and others, as cofiduciaries. Any bank, savings and loan association or trust company may as such fiduciary or cofiduciary invest funds which it lawfully holds for investment in interests in such common trust funds administered by itself or by any affiliated bank, savings and loan association or trust company, including any foreign affiliated bank, savings and loan association or trust company, if such investment is not prohibited by the instrument, judgment, decree, order or statute creating and governing such fiduciary relationship, and if, in the case of cofiduciaries, the bank, savings and loan association or trust company procures the consent of its cofiduciaries for such investment.

B. Each common trust fund established under this section is a separate and distinct entity from the fiduciary relationships participating in the fund. A fiduciary in administering a participating fiduciary relationship is not required to make any apportionment or allocation between the principal and income of the relationship different from that made for the common trust fund. A participating fiduciary relationship, or person having an interest in the relationship, is not deemed to have any ownership in particular property of the common trust fund, but each participating fiduciary relationship has a proportionate undivided interest in the fund and its income and the ownership of all property of the common trust fund is in the trustee of the fund.

C. This section applies to all fiduciary relationships, including those established prior to April 21, 1980, whether the relationships are revocable or irrevocable. This section and section 6-872 apply to common trust funds established under this section and the banks, savings and loan associations and trust companies operating these common trust funds.

D. For purposes of this section, two or more banks, savings and loan associations or trust companies are affiliated if they are members of the same affiliated group, within the meaning of section 1504 of the United States internal revenue code.

E. Nothing in this article shall exempt a common trust fund or any fiduciary thereof from the requirements of title 20, if such common trust fund or fiduciary is used for insurance purposes.