386.560 Purchase of own stock -- Responsibility and liability -- Compliance with

154 words·~1 min read·/ky/386-560

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

regulations of comptroller of currency.

(1)A fiduciary investment company may acquire, purchase or redeem its own stock and

shall, by means of contract or by its bylaws, bind itself to acquire, purchase or

redeem its own stock, but it shall not vote shares of its own stock theretofore

redeemed.

(2)A fiduciary investment company shall not be responsible for ascertaining the

investment powers of any fiduciary who may purchase its stock and shall not be

liable for accepting funds from a fiduciary in violation of restrictions of the will,

trust indenture or other instrument under which such fiduciary is acting in absence

of actual knowledge of such violation, and shall be accountable only to the

supervisory agency and the fiduciaries who are the owners of its stock.

(3)Every fiduciary investment company having a national bank as investment adviser

shall comply with all applicable rules and regulations of the comptroller of the

currency.