§ 3-512
141 words·~1 min read·
/md/financial-institutions/3-512A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–512.
(a)Except as otherwise provided in this section, a trust company may not:
(1)Invest its own funds in a common trust fund that it administers; or
(2)Have any interest, other than its fiduciary interest, in the assets in a common trust fund that it administers.
(b)If, because of a creditor relationship or otherwise, a trust company acquires an interest in a participation in a common trust fund that it administers, the participation shall be withdrawn on the next valuation date allowed by the fund plan.
(c)A trust company does not have a prohibited interest in the assets of a common trust fund that it administers merely because the trust company owns in its own right any stocks, bonds, or other obligations issued by a person from whom the fund also holds stocks, bonds, or other obligations.