As Passed by the House 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 701 5
1997-1998 6
REPRESENTATIVES MASON-WOMER BENJAMIN-HARRIS-TERWILLEGER- 8
TAYLOR-GARCIA-EVANS-TIBERI-SALERNO-HAINES-HOUSEHOLDER-MILLER- 9
CORBIN-OLMAN-MEAD-MOTTLEY-WILSON-PATTON 10
12
A B I L L
To amend sections 1111.13, 2109.37, and 2109.371; to 14
amend, for purposes of adopting a new section 15
number as indicated in parentheses, section 16
1339.60 (1339.68); and to enact new section 17
1339.60 and sections 1339.52, 1339.53, 1339.54, 19
1339.55, 1339.56, 1339.57, 1339.58, 1339.59, and 20
1339.61 of the Revised Code to adopt the Uniform 21
Prudent Investor Act of the National Conference 23
of Commissioners on Uniform State Laws. 24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 1111.13, 2109.37, and 2109.371 be 28
amended, section 1339.60 (1339.68) be amended for the purpose of 29
adopting a new section number as indicated in parentheses, and 30
new section 1339.60 and sections 1339.52, 1339.53, 1339.54, 31
1339.55, 1339.56, 1339.57, 1339.58, 1339.59, and 1339.61 of the 32
Revised Code be enacted to read as follows:
Sec. 1111.13. (A)(1) Except as provided in divisions 41
(A)(2) and (G) of this section or as otherwise provided by the 42
instrument creating the trust, a trust company acting as 43
fiduciary under any instrument and having funds of the trust 45
which are to be invested may, in addition to any other
investments authorized to a trust company by law, invest them in 47
any of the following:
(a) Forms of investments enumerated or described in, or 49
2
made eligible for investment by, sections 1339.44, 1339.52 TO 50
1339.61, 2109.37, 2109.371, and 2109.372 of the Revised Code, 52
including, but not limited to, securities, stocks, bonds, or 53
certificates of deposit issued by the trust company or any bank 54
owned or controlled by the bank holding company that owns or 56
controls the trust company. Investment authority granted under
division (A)(1)(a) of this section is subject to the limitations 57
on investments specified in division (B) of section 2109.371 of 58
the Revised Code. 59
(b) Any collective investment fund established and 61
maintained by the trust company or by an affiliate of the trust 63
company;
(c) The securities of any investment company, including 65
any affiliated investment company, whether or not the trust 66
company has invested other funds held by it in an agency or other 67
nonfiduciary capacity in the securities of the same investment 68
company or affiliated investment company. 69
(2) A trust company acting as fiduciary may not invest its 72
trust funds in stock issued by the fiduciary itself except under 73
one of the following circumstances: 74
(a) In the case of a testamentary instrument, when 76
expressly permitted by the instrument creating the relationship 77
and authorized by court order; 78
(b) In the case of an inter vivos instrument, when 80
expressly permitted by the instrument or authorized by court 81
order and in either case, only when directed to purchase or 82
invest in the stock by a cofiduciary or other person other than 84
the trust company who has the right under the terms of the
instrument to direct the investment; 85
(c) When exercising rights to purchase its own stock or to 87
purchase or convert securities convertible into its own stock if 88
the rights were offered pro rata to the shareholders; 89
(d) To complement fractional shares acquired when the 91
exercise of rights or receipt of a stock dividend results in 92
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fractional shareholdings. 93
(3) If the law or the instrument creating a trust 95
expressly permits investment in direct obligations of the United 96
States or an agency or instrumentality of the United States, 98
unless expressly prohibited by the instrument, a trust company 99
also may invest in no front end load money market mutual funds 101
consisting exclusively of obligations of the United States or an 102
agency or instrumentality of the United States and in repurchase 103
agreements, including those issued by the trust company itself, 105
secured by obligations of the United States or an agency or 106
instrumentality of the United States, or in securities of other 108
no load money market mutual funds whose portfolios are similarly
restricted; and in collective investment funds established in 109
accordance with section 1111.14 of the Revised Code or by an 111
affiliate of the trust company and consisting exclusively of any 112
direct obligations of the United States or an agency or 114
instrumentality of the United States, notwithstanding division 115
(A)(1)(c) of that section.
(B) A trust company acting in any fiduciary capacity or 118
under any instrument has the right to retain any part of the 119
trust or estate it receives, whether from the creator of the 120
trust or the estate, at its inception or by later addition, or by 121
addition by any other person who is authorized to make additions 122
to the trust or estate, and any investments the trust company 124
makes.
(C) Except as otherwise expressly provided by the 126
instrument creating the fiduciary relationship, any trust company 127
may exercise all voting, consenting, and dissenting rights, 128
including the right to vote for the election of directors, 129
pertaining to stocks, bonds, or other securities held by it in 130
any fiduciary capacity, including rights pertaining to stocks, 132
bonds, or other securities issued by the trust company in its 133
individual corporate capacity and held by it in any fiduciary 134
capacity, provided: 135
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(1) In the case of any fiduciary relationship created 137
prior to January 1, 1968, voting rights pertaining to any shares 138
of a trust company's own stock held by it in a fiduciary 140
relationship, if exercised, shall be exercised with respect to 141
the election of directors, only in accordance with any provisions 142
of law applicable to that election and without regard to the 143
first paragraph of division (C) and divisions (C)(2)(a), (b), and 144
(c) of this section, and those portions of division (C) of this 146
section shall not be construed to be determinative of the voting 148
rights or to be declaratory of a public policy with respect to
the voting rights. 149
(2) In the case of any fiduciary relationship created on 151
or after January 1, 1968, voting rights pertaining to any shares 152
of a trust company's own stock held by it in a fiduciary 154
relationship shall be exercised by it with respect to the 155
election of directors, only if and as directed in writing by any 156
person described in division (C)(2)(a), (b), or (c) of this 157
section, provided that the person may not be the trust company, 159
or a director, officer, or employee of the trust company except 160
as to fiduciary relationships in which the director, officer, or 162
employee is a settlor or beneficiary, or a nominee, agent, 163
attorney, or subsidiary of the trust company: 164
(a) Any person, including a settlor or beneficiary, who 166
has the right under the terms of the instrument under which 167
shares are held to determine the manner in which shares shall be 168
voted, or if there is no such person; 169
(b) Any person acting as cofiduciary under the instrument 171
under which such shares are held, or if there is no such person; 173
(c) Any person, having the right of revocation or 175
amendment of the instrument under which the shares are held. 177
(D) If there is more than one person having power to 179
direct voting under division (C)(2)(a), (b), or (c) of this 180
section and they fail to agree, each person shall have the right 182
to direct voting with respect to the election of directors as to 183
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an equal number of shares.
(E) As used in this section: 185
(1) "Affiliated investment company" means any investment 187
company that is any of the following: 188
(a) Sponsored by the trust company that is acting as 191
fiduciary or by a trust company, bank, bank subsidiary
corporation, or other corporation owned or controlled by the bank 192
holding company that owns or controls the trust company that is 193
acting as fiduciary; 194
(b) The result of any agreement with a trust company, 196
bank, bank subsidiary corporation, or other corporation owned or 198
controlled by the bank holding company that owns or controls the
trust company that is acting as fiduciary; 199
(c) Established exclusively for the customers or accounts 201
of the trust company that is acting as fiduciary or of a trust 203
company, bank, bank subsidiary corporation, or other corporation 204
owned or controlled by the bank holding company that owns or 205
controls the trust company that is acting as fiduciary; 207
(d) Provided with investment advisory, brokerage, transfer 209
agency, registrar, management, shareholder servicing, custodian, 210
or any related services by the trust company that is acting as 212
fiduciary or by a trust company, bank, bank subsidiary 213
corporation, or other corporation owned or controlled by the bank 215
holding company that owns or controls the trust company that is 216
acting as fiduciary.
(2) "Cofiduciary" includes, but is not limited to, a 218
cotrustee, coexecutor, coadministrator, coguardian, co-agent, and 219
any person who, under the terms of the instrument creating the 220
fiduciary relationship, has the right or power to direct, approve 221
or consent to, or be consulted with respect to, the making, 222
retention, or sale of investments under the instrument. 223
(3) "Instrument" includes, but is not limited to, any 225
will, declaration of trust, agreement of trust, agency, or 226
custodianship, or court order creating a fiduciary relationship. 227
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(4) "Reasonable fee" means compensation or payment, the 230
receipt of which would not constitute a breach of fiduciary duty 231
under section 36 of the "Investment Company Act of 1940," 54 232
Stat. 789, 15 U.S.C.A. 80a-35. 233
(F) Shares as to which the voting rights with respect to 235
the election of directors may not be exercised under this section 236
shall not be considered as outstanding for the purpose of 237
computing the voting power of the corporation or of its shares of 238
any class with respect to the election of directors. 239
(G) This section does not authorize a trust company acting 241
as a probate fiduciary to perform any act prohibited by section 243
2109.44 of the Revised Code, unless the act is authorized by the 245
instrument creating the trust.
(H) A trust company making an investment of trust funds in 247
an affiliated investment company, or a bank or other corporation 248
owned or controlled by the bank holding company that owns or 250
controls the trust company, may charge a reasonable fee for 251
investment advisory, brokerage, transfer agency, registrar, 252
management, shareholder servicing, custodian, or any related 253
services provided to an affiliated investment company. The fee 254
may be in addition to the compensation that the trust company is 255
otherwise entitled to receive from the trust, provided that the 257
fee is charged as a percentage of either asset value or income
earned or actual amount charged and is disclosed at least 258
annually by prospectus, account statement, or any other written 259
means to all persons entitled to receive statements of account 260
activity. 261
(I) A trust company making an investment of trust funds in 263
the securities of an affiliated investment company pursuant to 264
division (A)(1)(c) of this section shall, when providing any 265
periodic account statements to the trust fund, report the net 266
asset value of the shares comprising the investment of the trust 267
fund in the affiliated investment company. 268
(J) If a trust company making an investment of trust funds 270
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in the securities of an affiliated investment company pursuant to 271
division (A)(1)(c) of this section invests the funds in any 272
mutual fund, the trust company shall disclose, in at least 273
ten-point boldface type, by prospectus, account statement, or any 274
other written means to all persons entitled to receive statements 275
of account activity, that the mutual fund is not insured or 276
guaranteed by the federal deposit insurance corporation or by any 277
other government agency or government-sponsored agency of the 278
federal government or of this state. 279
Sec. 1339.52. (A) AS USED IN SECTIONS 1339.52 TO 1339.61 281
OF THE REVISED CODE, "TRUSTEE" MEANS A TRUSTEE UNDER ANY 283
TESTAMENTARY, INTER VIVOS, OR OTHER TRUST.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OR (D) OF THIS 286
SECTION, A TRUSTEE WHO INVESTS AND MANAGES TRUST ASSETS UNDER
SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE OWES A DUTY TO 289
THE BENEFICIARIES OF THE TRUST TO COMPLY WITH SECTIONS 1339.52 TO 290
1339.61 OF THE REVISED CODE. 292
(C) SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE MAY BE 296
EXPANDED, RESTRICTED, ELIMINATED, OR OTHERWISE ALTERED, WITHOUT 297
EXPRESS REFERENCE TO THESE SECTIONS BY THE INSTRUMENT CREATING A 298
TRUST. 299
(D) A TRUSTEE IS NOT LIABLE TO A BENEFICIARY OF A TRUST TO 301
THE EXTENT THE TRUSTEE ACTED IN REASONABLE RELIANCE ON THE 302
PROVISIONS OF THE TRUST. 303
Sec. 1339.53. (A) A TRUSTEE SHALL INVEST AND MANAGE TRUST 305
ASSETS AS A PRUDENT INVESTOR WOULD, BY CONSIDERING THE PURPOSES, 307
TERMS, DISTRIBUTION REQUIREMENTS, AND OTHER CIRCUMSTANCES OF THE 308
TRUST. IN SATISFYING THIS REQUIREMENT, THE TRUSTEE SHALL 309
EXERCISE REASONABLE CARE, SKILL, AND CAUTION. 310
(B) A TRUSTEE SHALL MAKE A REASONABLE EFFORT TO VERIFY 313
FACTS RELEVANT TO THE INVESTMENT AND MANAGEMENT OF TRUST ASSETS. 314
(C) A TRUSTEE WHO HAS SPECIAL SKILLS OR EXPERTISE, OR IS 317
NAMED TRUSTEE IN RELIANCE UPON THE TRUSTEE'S REPRESENTATION THAT 318
THE TRUSTEE HAS SPECIAL SKILLS OR EXPERTISE, HAS A DUTY TO USE 319
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THOSE SPECIAL SKILLS OR EXPERTISE. 320
(D) A TRUSTEE'S INVESTMENT AND MANAGEMENT DECISIONS 323
RESPECTING INDIVIDUAL TRUST ASSETS SHALL NOT BE EVALUATED IN 324
ISOLATION BUT IN THE CONTEXT OF THE TRUST PORTFOLIO AS A WHOLE 325
AND AS PART OF AN OVERALL INVESTMENT STRATEGY HAVING RISK AND 326
RETURN OBJECTIVES REASONABLY SUITED TO THE TRUST. 327
(E) AMONG CIRCUMSTANCES THAT A TRUSTEE SHALL CONSIDER IN 330
INVESTING AND MANAGING TRUST ASSETS ARE THE FOLLOWING AS ARE 331
RELEVANT TO THE TRUST OR ITS BENEFICIARIES: 332
(1) THE GENERAL ECONOMIC CONDITIONS; 334
(2) THE POSSIBLE EFFECT OF INFLATION OR DEFLATION; 336
(3) THE EXPECTED TAX CONSEQUENCES OF INVESTMENT DECISIONS 338
OR STRATEGIES; 339
(4) THE ROLE THAT EACH INVESTMENT OR COURSE OF ACTION 341
PLAYS WITHIN THE OVERALL TRUST PORTFOLIO, WHICH MAY INCLUDE 342
FINANCIAL ASSETS, INTERESTS IN CLOSELY HELD ENTERPRISES, TANGIBLE 344
AND INTANGIBLE PERSONAL PROPERTY, AND REAL PROPERTY; 345
(5) THE EXPECTED TOTAL RETURN FROM INCOME AND APPRECIATION 347
OF CAPITAL; 348
(6) OTHER RESOURCES OF THE BENEFICIARIES; 350
(7) NEEDS FOR LIQUIDITY, REGULARITY OF INCOME, AND 352
PRESERVATION OR APPRECIATION OF CAPITAL; 353
(8) AN ASSET'S SPECIAL RELATIONSHIP OR SPECIAL VALUE, IF 355
ANY, TO THE PURPOSES OF THE TRUST OR TO ONE OR MORE OF THE 356
BENEFICIARIES. 357
Sec. 1339.54. (A) A TRUSTEE MAY INVEST IN ANY KIND OF 359
PROPERTY OR TYPE OF INVESTMENT PROVIDED THAT THE INVESTMENT IS 360
CONSISTENT WITH THE REQUIREMENTS AND STANDARDS OF SECTIONS 361
1339.52 TO 1339.61 OF THE REVISED CODE. 363
(B) A TRUSTEE SHALL DIVERSIFY THE INVESTMENTS OF A TRUST 366
UNLESS THE TRUSTEE REASONABLY DETERMINES THAT, BECAUSE OF SPECIAL 367
CIRCUMSTANCES, THE PURPOSES OF THE TRUST ARE BETTER SERVED 368
WITHOUT DIVERSIFYING. 369
Sec. 1339.55. (A) A TRUSTEE SHALL INVEST AND MANAGE THE 372
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TRUST ASSETS SOLELY IN THE INTEREST OF THE BENEFICIARIES. 373
(B) IF A TRUST HAS TWO OR MORE BENEFICIARIES, THE TRUSTEE 376
SHALL ACT IMPARTIALLY IN INVESTING AND MANAGING THE TRUST ASSETS 377
TAKING INTO ACCOUNT ANY DIFFERING INTERESTS OF THE BENEFICIARIES. 378
Sec. 1339.56. WITHIN A REASONABLE TIME AFTER ACCEPTING A 380
TRUSTEESHIP OR RECEIVING TRUST ASSETS, A TRUSTEE SHALL REVIEW THE 382
TRUST ASSETS AND MAKE AND IMPLEMENT DECISIONS CONCERNING THE
RETENTION AND DISPOSITION OF TRUST ASSETS IN ORDER TO BRING THE 383
TRUST PORTFOLIO INTO COMPLIANCE WITH THE PURPOSES, TERMS, 384
DISTRIBUTION REQUIREMENTS, AND OTHER CIRCUMSTANCES OF THE TRUST, 385
AND IN ORDER TO COMPLY WITH THE REQUIREMENTS AND STANDARDS OF 386
SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE. 389
Sec. 1339.57. EXCEPT AS OTHERWISE PERMITTED BY LAW, IN 391
INVESTING AND MANAGING TRUST ASSETS, A TRUSTEE MAY ONLY INCUR 393
COSTS THAT ARE APPROPRIATE AND REASONABLE IN RELATION TO THE 394
ASSETS, THE PURPOSES OF THE TRUST, AND THE SKILLS OF THE TRUSTEE. 395
Sec. 1339.58. COMPLIANCE WITH SECTIONS 1339.52 TO 1339.61 397
OF THE REVISED CODE SHALL BE DETERMINED IN LIGHT OF THE FACTS AND 400
CIRCUMSTANCES EXISTING AT THE TIME OF A TRUSTEE'S DECISION OR 401
ACTION AND NOT BY HINDSIGHT.
Sec. 1339.59. (A) A TRUSTEE MAY DELEGATE INVESTMENT AND 404
MANAGEMENT FUNCTIONS OF A TRUST THAT A PRUDENT TRUSTEE HAVING 405
COMPARABLE SKILLS COULD PROPERLY DELEGATE UNDER THE 406
CIRCUMSTANCES. IN ACCORDANCE WITH THIS DIVISION, A TRUSTEE SHALL 407
EXERCISE REASONABLE CARE, SKILL, AND CAUTION IN DOING ALL OF THE 408
FOLLOWING:
(1) SELECTING AN AGENT; 410
(2) ESTABLISHING THE SCOPE AND TERMS OF THE DELEGATION 412
CONSISTENT WITH THE PURPOSES AND TERMS OF THE TRUST; 413
(3) PERIODICALLY REVIEWING THE AGENT'S ACTIONS IN ORDER TO 415
MONITOR THE AGENT'S PERFORMANCE WITH THE TERMS OF THE DELEGATION. 417
(B) IN PERFORMING INVESTMENT OR MANAGEMENT FUNCTIONS OF A 420
TRUST THAT ARE DELEGATED TO AN AGENT, AN AGENT OWES A DUTY TO THE 421
TRUST TO EXERCISE REASONABLE CARE TO COMPLY WITH THE TERMS OF THE 422
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DELEGATION. 423
(C) A TRUSTEE WHO COMPLIES WITH DIVISION (A) OF THIS 427
SECTION IS NOT LIABLE TO THE BENEFICIARIES OF THE TRUST OR TO THE 428
TRUST FOR THE DECISIONS OR ACTIONS OF THE AGENT TO WHOM THE 429
FUNCTION WAS DELEGATED.
(D) BY ACCEPTING THE DELEGATION OF INVESTMENT OR MANAGEMENT 432
FUNCTIONS OF A TRUST THAT IS SUBJECT TO THE LAWS OF THIS STATE, 433
AN AGENT SUBMITS TO THE JURISDICTION OF THIS STATE. 434
Sec. 1339.60. THE FOLLOWING TERMS OR COMPARABLE LANGUAGE 436
IN THE PROVISIONS OF A TRUST, UNLESS OTHERWISE LIMITED OR 437
MODIFIED, AUTHORIZES ANY INVESTMENT OR STRATEGY PERMITTED BY 438
SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE: "INVESTMENTS 439
PERMISSIBLE BY LAW FOR INVESTMENT OF TRUST FUNDS"; "LEGAL 441
INVESTMENTS"; "AUTHORIZED INVESTMENTS"; "USING THE JUDGMENT AND 442
CARE UNDER THE CIRCUMSTANCES THEN PREVAILING THAT PERSONS OF 443
PRUDENCE, DISCRETION, AND INTELLIGENCE EXERCISE IN THE MANAGEMENT 444
OF THEIR OWN AFFAIRS, NOT IN REGARD TO SPECULATION BUT IN REGARD 445
TO THE PERMANENT DISPOSITION OF THEIR FUNDS CONSIDERING THE 446
PROBABLE INCOME AS WELL AS THE PROBABLE SAFETY OF THEIR CAPITAL"; 447
"PRUDENT MAN RULE"; "PRUDENT TRUSTEE RULE"; "PRUDENT PERSON 448
RULE"; AND "PRUDENT INVESTOR RULE." 449
Sec. 1339.61. (A) SECTIONS 1339.52 TO 1339.61 OF THE 452
REVISED CODE SHALL BE APPLIED AND CONSTRUED TO EFFECTUATE THE 454
GENERAL PURPOSE TO MAKE UNIFORM THE LAW WITH RESPECT TO THE 455
SUBJECT OF THESE SECTIONS AMONG THE STATES ENACTING IT. THESE 456
SECTIONS MAY BE CITED AS THE "OHIO UNIFORM PRUDENT INVESTOR ACT." 461
(B) SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE APPLY 465
TO TRUSTS EXISTING ON OR CREATED AFTER THE EFFECTIVE DATE OF 466
THESE SECTIONS. AS APPLIED TO TRUSTS EXISTING ON THE EFFECTIVE 467
DATE OF THESE SECTIONS, SECTIONS 1339.52 TO 1339.61 OF THE 469
REVISED CODE GOVERN ONLY DECISIONS OR ACTIONS OCCURRING AFTER THE 471
EFFECTIVE DATE OF THESE SECTIONS. 472
(C) THE TEMPORARY INVESTMENT OF CASH OR FUNDS PURSUANT TO 475
SECTION 1339.44 OR 2109.372 OF THE REVISED CODE SHALL BE 477
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CONSIDERED A PRUDENT INVESTMENT IN COMPLIANCE WITH SECTIONS 478
1339.52 TO 1339.61 OF THE REVISED CODE. 480
Sec. 1339.60 1339.68. (A) As used in this section: 489
(1) "Disclaimant" means any person, any guardian or 491
personal representative of a person or estate of a person, or any 492
attorney-in-fact or agent of a person having a general or 493
specific authority to act granted in a written instrument, who is 494
any of the following: 495
(a) With respect to testamentary instruments and intestate 497
succession, an heir, next of kin, devisee, legatee, donee, person 498
succeeding to a disclaimed interest, surviving joint tenant, 499
surviving tenant by the entireties, surviving tenant of a tenancy 500
with a right of survivorship, beneficiary under a testamentary 501
instrument, or person designated to take pursuant to a power of 502
appointment exercised by a testamentary instrument; 503
(b) With respect to nontestamentary instruments, a 505
grantee, donee, person succeeding to a disclaimed interest, 506
surviving joint tenant, surviving tenant by the entireties, 507
surviving tenant of a tenancy with a right of survivorship, 508
beneficiary under a nontestamentary instrument, or person 509
designated to take pursuant to a power of appointment exercised 510
by a nontestamentary instrument; 511
(c) With respect to fiduciary rights, privileges, powers, 513
and immunities, a fiduciary under a testamentary or 514
nontestamentary instrument. This section does not authorize a 515
fiduciary to disclaim the rights of beneficiaries unless the 516
instrument creating the fiduciary relationship authorizes such a 517
disclaimer. 518
(d) Any person entitled to take an interest in property 520
upon the death of a person or upon the occurrence of any other 521
event. 522
(2) "Property" means all forms of property, real and 524
personal, tangible and intangible. 525
(B)(1) A disclaimant, other than a fiduciary under an 527
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instrument who is not authorized by the instrument to disclaim 528
the interest of a beneficiary, may disclaim, in whole or in part, 529
the succession to any property by executing and by delivering, 530
filing, or recording a written disclaimer instrument in the 531
manner provided in this section. 532
(2) A disclaimant who is a fiduciary under an instrument 534
may disclaim, in whole or in part, any right, power, privilege, 535
or immunity, by executing and by delivering, filing, or recording 536
a written disclaimer instrument in the manner provided in this 537
section. 538
(3) The written instrument of disclaimer shall be signed 540
and acknowledged by the disclaimant and shall contain all of the 541
following: 542
(a) A reference to the donative instrument; 544
(b) A description of the property, part of property, or 546
interest disclaimed, and of any fiduciary right, power, 547
privilege, or immunity disclaimed; 548
(c) A declaration of the disclaimer and its extent. 550
(4) The guardian of the estate of a minor or an 552
incompetent, or the personal representative of a deceased person, 553
with the consent of the probate division of the court of common 554
pleas, may disclaim, in whole or in part, the succession to any 555
property, or interest in property, that the ward, if an adult and 556
competent, or the deceased, if living, might have disclaimed. The 558
guardian or personal representative, or any interested person may 559
file an application with the probate division of the court of
common pleas that has jurisdiction of the estate, asking that the 560
court order the guardian or personal representative to execute 561
and deliver, file, or record the disclaimer on behalf of the ward 562
or estate. The court shall order the guardian or personal 563
representative to execute and deliver, file, or record the 564
disclaimer if the court finds, upon hearing after notice to 565
interested parties and such other persons as the court shall 566
direct, that: 567
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(a) It is in the best interests of those interested in the 569
estate of the person and of those who will take the disclaimed 570
interest; 571
(b) It would not materially, adversely affect the minor or 573
incompetent, or the beneficiaries of the estate of the decedent, 574
taking into consideration other available resources and the age, 575
probable life expectancy, physical and mental condition, and 576
present and reasonably anticipated future needs of the minor or 577
incompetent or the beneficiaries of the estate of the decedent. 578
A written instrument of disclaimer ordered by the court 580
under this division shall be executed and be delivered, filed, or 581
recorded within the time and in the manner in which the person 582
could have disclaimed if he THE PERSON were living, an adult, and 584
competent.
(C) A partial disclaimer of property that is subject to a 586
burdensome interest created by the donative instrument is not 587
effective unless the disclaimed property constitutes a gift that 588
is separate and distinct from undisclaimed gifts. 589
(D) The disclaimant shall deliver, file, or record the 591
disclaimer, or cause the same to be done, not later than nine 592
months after the latest of the following dates: 593
(1) The effective date of the donative instrument if both 595
the taker and his THE TAKER'S interest in the property are 596
finally ascertained on that date; 598
(2) The date of the occurrence of the event upon which 600
both the taker and his THE TAKER'S interest in the property 601
become finally ascertainable; 603
(3) The date on which the disclaimant attains twenty-one 605
years of age or is no longer an incompetent, without tendering or 606
repaying any benefit received while the disclaimant was under 607
twenty-one years of age or an incompetent, and even if a guardian 608
of a minor or incompetent had filed an application pursuant to 609
division (B)(4) of this section and the probate division of the 610
court of common pleas involved did not consent to the guardian 611
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executing a disclaimer. 612
(E) No disclaimer instrument is effective under this 614
section if either of the following applies under the terms of the 615
disclaimer instrument: 616
(1) The disclaimant has power to revoke the disclaimer; 618
(2) The disclaimant may transfer, or direct to be 620
transferred, to himself SELF the entire legal and equitable 621
ownership of the property subject to the disclaimer instrument. 623
(F)(1) If the interest disclaimed is created by a 625
nontestamentary instrument, the disclaimer instrument shall be 626
delivered personally or by certified mail to the trustee or other 627
person who has legal title to, or possession of, the property 628
disclaimed. 629
(2) If the interest disclaimed is created by a 631
testamentary instrument or by intestate succession, the 632
disclaimer instrument shall be filed in the probate division of 633
the court of common pleas in the county in which proceedings for 634
the administration of the decedent's estate have been commenced, 635
and an executed copy of the disclaimer instrument shall be 636
delivered personally or by certified mail to the personal 637
representative of the decedent's estate. 638
(3) If no proceedings for the administration of the 640
decedent's estate have been commenced, the disclaimer instrument 641
shall be filed in the probate division of the court of common 642
pleas in the county in which proceedings for the administration 643
of the decedent's estate might be commenced according to law. The 645
disclaimer instrument shall be filed and indexed, and fees
charged, in the same manner as provided by law for an application 646
to be appointed as personal representative to administer the 647
decedent's estate. The disclaimer is effective whether or not 648
proceedings thereafter are commenced to administer the decedent's 649
estate. If proceedings thereafter are commenced for the 650
administration of the decedent's estate, they shall be filed 651
under, or consolidated with, the case number assigned to the 652
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disclaimer instrument. 653
(4) If an interest in real estate is disclaimed, an 655
executed copy of the disclaimer instrument also shall be recorded 656
in the office of the recorder of the county in which the real 657
estate is located. The disclaimer instrument shall include a 658
description of the real estate with sufficient certainty to 659
identify it, and shall contain a reference to the record of the 660
instrument that created the interest disclaimed. If title to the 661
real estate is registered under Chapters 5309. and 5310. of the 662
Revised Code, the disclaimer interest shall be entered as a 663
memorial on the last certificate of title. A spouse of a 664
disclaimant has no dower or other interest in the real estate 665
disclaimed. 666
(G) Unless the donative instrument expressly provides 668
that, if there is a disclaimer, there shall not be any 669
acceleration of remainders or other interests, the property, part 670
of property, or interest in property disclaimed, and any future 671
interest that is to take effect in possession or enjoyment at or 672
after the termination of the interest disclaimed, shall descend, 673
be distributed, or otherwise be disposed of, and shall be 674
accelerated, in the following manner: 675
(1) If intestate or testate succession is disclaimed, as 677
if the disclaimant had predeceased the decedent; 678
(2) If the disclaimant is one designated to take pursuant 680
to a power of appointment exercised by a testamentary instrument, 681
as if the disclaimant had predeceased the donee of the power; 682
(3) If the donative instrument is a nontestamentary 684
instrument, as if the disclaimant had died before the effective 685
date of the nontestamentary instrument; 686
(4) If the disclaimer is of a fiduciary right, power, 688
privilege, or immunity, as if the right, power, privilege, or 689
immunity was never in the donative instrument. 690
(H) A disclaimer pursuant to this section is effective as 692
of, and relates back for all purposes to, the date upon which the 693
16
taker and his THE TAKER'S interest have been finally ascertained. 695
(I) A disclaimant who has a present and future interest in 697
property, and disclaims his THE DISCLAIMANT'S present interest in 699
whole or in part, is considered to have disclaimed his THE 700
DISCLAIMANT'S future interest to the same extent, unless a 702
contrary intention appears in the disclaimer instrument or the 703
donative instrument. A disclaimant is not precluded from 704
receiving, as an alternative taker, a beneficial interest in the 705
property disclaimed, unless a contrary intention appears in the 706
disclaimer instrument or in the donative instrument. 707
(J) The disclaimant's right to disclaim under this section 709
is barred if, before the expiration of the period within which he 710
THE DISCLAIMANT may disclaim the interest, he THE DISCLAIMANT 712
does any of the following: 713
(1) Assigns, conveys, encumbers, pledges, or transfers, or 715
contracts to assign, convey, encumber, pledge, or transfer, the 716
property or any interest in it; 717
(2) Waives in writing his THE DISCLAIMANT'S right to 719
disclaim and executes and delivers, files, or records the waiver 721
in the manner provided in this section for a disclaimer 722
instrument;
(3) Accepts the property or an interest in it; 724
(4) Permits or suffers a sale or other disposition of the 726
property pursuant to judicial action against him THE DISCLAIMANT. 728
(K) A fiduciary's application for appointment or 730
assumption of duties as a fiduciary does not waive or bar his THE 731
DISCLAIMANT'S right to disclaim a right, power, privilege, or 733
immunity.
(L) The right to disclaim under this section exists 735
irrespective of any limitation on the interest of the disclaimant 736
in the nature of a spendthrift provision or similar restriction. 737
(M) A disclaimer instrument or written waiver of the right 739
to disclaim that has been executed and delivered, filed, or 740
recorded as required by this section is final and binding upon 741
17
all persons. 742
(N) The right to disclaim and the procedures for 744
disclaimer established by this section are in addition to, and do 745
not exclude or abridge, any other rights or procedures existing 746
under any other section of the Revised Code or at common law to 747
assign, convey, release, refuse to accept, renounce, waive, or 748
disclaim property. 749
(O)(1) No person is liable for distributing or disposing 751
of property in a manner inconsistent with the terms of a valid 752
disclaimer if the distribution or disposition is otherwise proper 753
and the person has no actual knowledge of the disclaimer. 754
(2) No person is liable for distributing or disposing of 756
property in reliance upon the terms of a disclaimer that is 757
invalid because the right of disclaimer has been waived or barred 758
if the distribution or disposition is otherwise proper and the 759
person has no actual knowledge of the facts that constitute a 760
waiver or bar to the right to disclaim. 761
(P)(1) A disclaimant may disclaim pursuant to this section 764
any interest in property that is in existence on September 27, 765
1976, if either the interest in the property or the taker of the 766
interest in the property is not finally ascertained on that date. 767
(2) No disclaimer executed pursuant to this section 769
destroys or diminishes an interest in property that exists on 770
September 27, 1976, in any person other than the disclaimant. 771
Sec. 2109.37. (A) Except as otherwise provided by law, 780
INCLUDING DIVISION (D) OF THIS SECTION, or by the instrument 782
creating the trust, a fiduciary having funds belonging to a trust 783
which are to be invested may invest them in the following: 784
(1) Bonds or other obligations of the United States or of 786
this state; 787
(2) Bonds or other interest-bearing obligations of any 789
county, municipal corporation, school district, or other legally 790
constituted political taxing subdivision within the state, 791
provided that such county, municipal corporation, school 792
18
district, or other subdivision has not defaulted in the payment 793
of the interest on any of its bonds or interest-bearing 794
obligations, for more than one hundred twenty days during the ten 795
years immediately preceding the investment by such THE fiduciary 796
in such THE bonds or other obligations, and provided that such 798
county, municipal corporation, school district, or other 800
subdivision, is not, at the time of such THE investment, in 801
default in the payment of principal or interest on any of its 803
bonds or other interest-bearing obligations; 804
(3) Bonds or other interest-bearing obligations of any 806
other state of the United States which, within twenty years prior 807
to the making of such investment, has not defaulted for more than 808
ninety days in the payment of principal or interest on any of its 809
bonds or other interest-bearing obligations; 810
(4) Any bonds issued by or for federal land banks and any 812
debentures issued by or for federal intermediate credit banks 813
under the "Federal Farm Loan Act of 1916," 39 Stat. 360, 12 814
U.S.C.A. 641, as amended; or any debentures issued by or for 815
banks for cooperatives under the "Farm Credit Act of 1933," 48 816
Stat. 257, 12 U.S.C.A. 131, as amended; 817
(5) Notes which are: (a) secured by a first mortgage on 819
real estate held in fee and located in the state, improved by a 820
unit designed principally for residential use for not more than 821
four families or by a combination of such dwelling unit and 822
business property, the area designed or used for nonresidential 823
purposes not to exceed fifty per cent of the total floor area; 824
(b) secured by a first mortgage on real estate held in fee and 825
located in the state, improved with a building designed for 826
residential use for more than four families or with a building 827
used primarily for business purposes, if the unpaid principal of 828
the notes secured by such mortgage does not exceed ten per cent 829
of the value of the estate or trust or does not exceed five 830
thousand dollars, whichever is greater; or (c) secured by a first 831
mortgage on an improved farm held in fee and located in the 832
19
state, provided that such mortgage requires that the buildings on 833
the mortgaged property shall be well insured against loss by 834
fire, and so kept, for the benefit of the mortgagee, until the 835
debt is paid, and provided that the unpaid principal of the notes 836
secured by the mortgage shall not exceed fifty per cent of the 837
fair value of the mortgaged real estate at the time such THE 838
investment is made, and such THE notes shall be payable not more 839
than five years after the date on which the investment in them is 841
made; except that the unpaid principal of such THE notes may 842
equal sixty per cent of the fair value of the mortgaged real 844
estate at the time such THE investment is made, and may be 845
payable over a period of fifteen years following the date of the 846
investment by the fiduciary if regular installment payments are 847
required sufficient to amortize four per cent or more of the 848
principal of the outstanding notes per annum and if the unpaid 849
principal and interest become due and payable at the option of 850
the holder upon any default in the payment of any installment of 851
interest or principal upon the notes, or of taxes, assessments, 852
or insurance premiums upon the mortgaged premises or upon the 853
failure to cure any such default within any grace period provided 854
therein not exceeding ninety days in duration; 855
(6) Life, endowment, or annuity contracts of legal reserve 857
life insurance companies regulated by sections 3907.01 to 858
3907.21, 3909.01 to 3909.17, 3911.01 to 3911.24, 3913.01 to 859
3913.10, 3915.01 to 3915.15, and 3917.01 to 3917.05 of the 860
Revised Code, and licensed by the superintendent of insurance to 861
transact business within the state, provided that the purchase of 862
contracts authorized by this division shall be limited to 863
executors or the successors to their powers when specifically 864
authorized by will and to guardians and trustees, which contracts 865
may be issued on the life of a ward, a beneficiary of a trust 866
fund, or according to a will, or upon the life of a person in 867
whom such ward or beneficiary has an insurable interest and such 868
THE contracts shall be drawn by the insuring company so that the 870
20
proceeds shall be the sole property of the person whose funds are 871
so invested; 872
(7) Notes or bonds secured by mortgages and insured by the 874
federal housing administrator or debentures issued by such 875
administrator; 876
(8) Obligations issued by a federal home loan bank created 878
under the "Federal Home Loan Bank Act of 1932," 47 Stat. 725, 12 879
U.S.C.A. 1421, as amended; 880
(9) Shares and certificates or other evidences of deposits 882
issued by a federal savings and loan association organized and 883
incorporated under the "Home Owners' Loan Act of 1933," 48 Stat. 884
128, 12 U.S.C.A. 1461, as amended, to the extent and only to the 885
extent that those shares or certificates or other evidences of 886
deposits are insured pursuant to the "Financial Institutions 887
Reform, Recovery, and Enforcement Act of 1989," 103 Stat. 183, 12 888
U.S.C.A. 1811, as amended; 889
(10) Bonds issued by the home owners' loan corporation 891
created under the "Home Owners' Act of 1933," 48 Stat. 128, 12 892
U.S.C.A. 1461, as amended; 893
(11) Obligations issued by the national mortgage 895
association created under the "National Housing Act," 48 Stat. 896
1246 (1934), 12 U.S.C.A. 1701, as amended; 897
(12) Shares and certificates or other evidences of 899
deposits issued by a domestic savings and loan association 900
organized under the laws of the state, which association has 901
obtained insurance of accounts pursuant to the "Financial 902
Institutions Reform, Recovery, and Enforcement Act of 1989," 103 903
Stat. 183, 12 U.S.C.A. 1811, as amended, or as may be otherwise 904
provided by law, only to the extent that such evidences of 905
deposits are insured under that act, as amended; 906
(13) Shares and certificates or other evidences of 908
deposits issued by a domestic savings and loan association 909
organized under the laws of the state, provided that no fiduciary 910
may invest such deposits except with the approval of the probate 911
21
court, and then in an amount not to exceed the amount which the 912
fiduciary is permitted to invest under division (A)(12) of this 913
section; 914
(14) In savings accounts in, or certificates or other 916
evidences of deposits issued by, a national bank located in the 917
state or a state bank located in and organized under the laws of 918
the state by depositing such THE funds in the bank, and such 919
national or state bank when itself acting in a fiduciary capacity 921
may deposit such THE funds in savings accounts in, or 922
certificates or other evidences of deposits issued by, its own 924
savings department or any bank subsidiary corporation owned or 925
controlled by the bank holding company that owns or controls such 926
national or state bank; provided that no deposit shall be made by 927
any fiduciary, individual, or corporate, unless the deposits of 928
the depository bank are insured by the federal deposit insurance 929
corporation created under the "Federal Deposit Insurance 930
Corporation Act of 1933," 48 Stat. 162, 12 U.S.C. 264, as 931
amended, and provided that the deposit of the funds of any one 932
trust in any such savings accounts in, or certificates or other 933
evidences of deposits issued by, any one bank shall not exceed 934
the sum insured under that act, as amended; 935
(15) Obligations consisting of notes, bonds, debentures, 937
or equipment trust certificates issued under an indenture, which 938
are the direct obligations, or in the case of equipment trust 939
certificates are secured by direct obligations, of a railroad or 940
industrial corporation, or a corporation engaged directly and 941
primarily in the production, transportation, distribution, or 942
sale of electricity or gas, or the operation of telephone or 943
telegraph systems or waterworks, or in some combination of them; 944
provided that the obligor corporation is one which is 945
incorporated under the laws of the United States, any state, or 946
the District of Columbia, and the obligations are rated at the 947
time of purchase in the highest or next highest classification 948
established by at least two standard rating services selected 949
22
from a list of the standard rating services which shall be 950
prescribed by the superintendent of financial institutions; 951
provided that every such list shall be certified by such THE 953
superintendent to the clerk of each probate court in the state, 955
and shall continue in effect until a different list is prescribed 956
and certified as provided in this division; 957
(16) Obligations issued, assumed, or guaranteed by the 960
international finance corporation or by the international bank 962
for reconstruction and development, the Asian development bank, 963
the inter-American development bank, the African development 964
bank, or other similar development bank in which the president, 965
as authorized by congress and on behalf of the United States, has 966
accepted membership, provided that the obligations are rated at 967
the time of purchase in the highest or next highest 968
classification established by at least one standard rating 969
service selected from a list of standard rating services which 970
shall be prescribed by the superintendent of financial
institutions;
(17) Securities of any investment company, as defined in 972
and registered under sections 3 and 8 of the "Investment Company 973
Act of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-3 and 80a-8, that are 974
invested exclusively in forms of investment or in instruments 975
that are fully collateralized by forms of investment in which the 976
fiduciary is permitted to invest pursuant to divisions (A)(1) to 977
(16) of this section, provided that, in addition to such forms of 978
investment, such THE investment company may, for the purpose of 979
reducing risk of loss or of stabilizing investment returns, 980
engage in hedging transactions. 981
(B) No administrator or executor may invest funds 983
belonging to an estate in any asset other than a direct 984
obligation of the United States that has a maturity date not 985
exceeding one year from the date of such investment, or other 986
than in a short-term investment fund that is invested exclusively 987
in obligations of the United States or of its agencies, or 988
23
primarily in such obligations and otherwise only in variable 989
demand notes, corporate money market instruments including, but 990
not limited to, commercial paper, or fully collateralized 991
repurchase agreements or other evidences of indebtedness that are 992
payable on demand or generally have a maturity date not exceeding 993
ninety-one days from the date of investment, except with the 994
approval of the probate court or with the permission of the 995
instruments creating the trust. 996
(C)(1) In addition to the investments allowed by this 998
section, a guardian or trustee, with the approval of the court, 999
may invest funds belonging to the trust in productive real estate 1,000
located within the state, provided that neither the guardian nor 1,001
the trustee nor any member of the family of either has any 1,002
interest in such real estate or in the proceeds of the purchase 1,003
price. The title to any real estate so purchased by a guardian 1,004
must be taken in the name of the ward. 1,005
(2) Notwithstanding the provisions of division (C)(1) of 1,007
this section, the court may permit the funds to be used to 1,008
purchase or acquire a home for the ward or an interest in a home 1,009
for the ward in which a member of the ward's family may have an 1,010
interest. 1,011
(D) IF THE FIDUCIARY IS A TRUSTEE APPOINTED BY AND 1,013
ACCOUNTABLE TO THE PROBATE COURT, THE FIDUCIARY SHALL INVEST THE 1,015
TRUST'S ASSETS PURSUANT TO THE REQUIREMENTS AND STANDARDS SET
FORTH IN SECTIONS 1339.52 TO 1339.61 OF THE REVISED CODE. 1,016
Sec. 2109.371. (A) In addition to those investments made 1,025
eligible by section 2109.37 or 2109.372 of the Revised Code, 1,026
investments may be made by a fiduciary other than a guardian 1,027
under sections 5905.01 to 5905.19 of the Revised Code, and 1,028
subject to the restriction placed on an administrator or executor 1,029
by division (B) of section 2109.37 of the Revised Code, in any of 1,030
the following kinds and classes of securities, provided that it 1,031
may be lawfully sold in Ohio and investment is made only in such 1,032
securities as would be acquired by prudent persons of discretion 1,034
24
and intelligence in such matters who are seeking a reasonable
income and the preservation of their capital: 1,035
(1) Securities of corporations organized and existing 1,037
under the laws of the United States, the District of Columbia, or 1,038
any state of the United States including, but not limited to, 1,039
bonds, debentures, notes, equipment trust obligations, or other 1,040
evidences of indebtedness, and shares of common and preferred 1,041
stocks of such corporations; 1,042
(2) Subject to division (C) of this section, collective 1,044
investment funds established in accordance with section 1111.14 1,045
of the Revised Code or securities of any investment company, 1,046
including any affiliated investment company, whether or not the 1,047
fiduciary has invested other funds held by it in an agency or 1,048
other nonfiduciary capacity in the securities of the same 1,049
investment company or affiliated investment company;
(3) Bonds or other interest-bearing obligations of any 1,051
state or territory of the United States, or of any county, city, 1,052
village, school district, or other legally constituted political 1,053
taxing subdivision of any state or territory of the United 1,054
States, not otherwise eligible under division (A)(2) or (3) of 1,055
section 2109.37 of the Revised Code. 1,056
(B) No investment shall be made pursuant to this section 1,058
which, at the time such investment is made, causes the aggregate 1,059
market value of the investments, not made eligible by section 1,060
2109.37 or 2109.372 of the Revised Code, to exceed sixty per cent 1,061
of the aggregate market value at that time of all the property of 1,062
the fund held by the fiduciary. No sale or other liquidation of 1,063
any investment shall be required solely because of any change in 1,064
the relative market value of those investments made eligible by 1,065
this section and those made eligible by section 2109.37 or 1,066
2109.372 of the Revised Code; provided that, in the event of a 1,067
sale of investments authorized by this section, the proceeds from 1,068
the sale may be reinvested in the kinds and classes of securities 1,069
authorized by this section without regard to the percentage 1,070
25
limitation provided in this division. In determining the 1,071
aggregate market value of the property of a fund and the 1,072
percentage of a fund to be invested under this section, a 1,073
fiduciary may rely upon published market quotations as to those 1,074
investments for which such quotations are available and upon such 1,075
valuations of other investments as, in the fiduciary's best 1,076
judgment, seem fair and reasonable according to available 1,077
information.
(C)(1)(a) A fiduciary making an investment of trust funds 1,080
in securities of an affiliated investment company, or a bank 1,081
subsidiary corporation or other corporation owned or controlled
by the bank holding company that owns or controls the fiduciary, 1,082
may charge a reasonable fee for investment advisory, brokerage, 1,083
transfer agency, registrar, management, or other similar services 1,084
provided to an affiliated investment company. The fee may be in 1,085
addition to the compensation to which the fiduciary is otherwise 1,087
entitled to receive from the trust, provided that the fee is
charged as a percentage of either asset value or income earned or 1,088
actual amount charged and is disclosed at least annually by 1,089
prospectus, account statement, or any other written means to all 1,090
persons entitled to receive statements of account activity. 1,091
(b) A fiduciary making an investment of trust funds in 1,093
securities of an affiliated investment company pursuant to 1,094
division (A)(2) of this section shall, when providing any 1,096
periodic account statements to the trust fund, report the net
asset value of the shares comprising the investment of the trust 1,097
funds in the affiliated investment company. 1,098
(c) If a fiduciary making an investment of trust funds in 1,100
securities of an affiliated investment company pursuant to 1,101
division (A)(2) of this section invests such funds in any mutual 1,103
fund, the fiduciary shall disclose, in at least ten-point
boldface type, by prospectus, account statement, or any other 1,104
written means to all persons entitled to receive statements of 1,105
account activity, that the mutual fund is not insured or 1,106
26
guaranteed by the federal deposit insurance corporation or by any 1,107
other government-sponsored agency of the federal government or of
this state. 1,108
(2) Unless the investment of trust funds in securities of 1,110
an affiliated investment company can be made under the terms of 1,111
the instrument creating the trust, an exception to the investment 1,112
of trust funds in securities of an affiliated investment company 1,113
may be filed with the probate court. Any exception filed 1,114
pursuant to this division must be signed by all persons who
would, at the time the exception is filed, be permitted to file 1,115
an exception to an account pursuant to section 2109.33 of the 1,117
Revised Code and must state that all such persons request that 1,118
the current investment of trust funds in securities of an 1,119
affiliated investment company be terminated within a reasonable 1,120
time. If the probate court determines that the exception
complies with the requirements of this division, the probate 1,121
court shall establish a schedule for disposing of any current 1,122
investments in securities of an affiliated investment company, 1,123
and the fiduciary shall cause the trust to dispose of the 1,124
investments in accordance with the schedule. The fiduciary shall 1,125
not be liable for any loss incurred by the trust as a result of
complying with division (C)(2) of this section. 1,126
(D) As used in this section, "affiliated investment 1,128
company," "investment company," and "reasonable fee" have the 1,129
same meanings as in division (E) of section 1109.10 1111.13 of 1,130
the Revised Code.
Section 2. That existing sections 1111.13, 1339.60, 1,132
2109.37, and 2109.371 of the Revised Code are hereby repealed. 1,133
Section 3. Section 2109.371 of the Revised Code is 1,135
presented in this act as a composite of the section as amended by 1,136
both Am. Sub. H.B. 538 and Sub. S.B. 129 of the 121st General 1,137
Assembly, with the new language of neither of the acts shown in 1,139
capital letters. This is in recognition of the principle stated 1,140
in division (B) of section 1.52 of the Revised Code that such 1,141
27
amendments are to be harmonized where not substantively 1,142
irreconcilable and constitutes a legislative finding that such is 1,143
the resulting version in effect prior to the effective date of 1,144
this act.