Public Act 90-0297 of the 90th General Assembly

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Public Act 90-0297

HB1035 Enrolled                                LRB9004021NTsb

    AN ACT to amend the Trusts and Trustees Act  by  changing
Section 5.2.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Trusts and Trustees  Act  is  amended  by
changing Section 5.2 as follows:

    (760 ILCS 5/5.2) (from Ch. 17, par. 1675.2)
    Sec.  5.2.   Investments  in  mutual  funds.  A  trustee,
including  a  trustee  of a common trust fund, may invest and
reinvest the trust estate in interests  in  any  open-end  or
closed-end   management   type  investment  company  or  unit
investment  trust  ("mutual  fund")  registered   under   the
Investment  Company Act of 1940 or any investment fund exempt
from registration under the Investment Company Act  of  1940,
any of these investment companies, unit investment trusts, or
investment  funds  being a "mutual fund" for purposes of this
Section, or may retain, sell, or  exchange  those  interests,
provided that the portfolio of the mutual fund, as an entity,
is  appropriate  under the provisions of this Act.  A trustee
shall  not  be  prohibited   from   investing,   reinvesting,
retaining,  or  exchanging  any  interests  held by the trust
estate in any  mutual  fund  for  which  the  trustee  or  an
affiliate  acts  as  advisor  or manager or in any other role
solely on the basis  that  the  trustee  (or  its  affiliate)
provides  services to the mutual fund and receives reasonable
remuneration for those services. Neither a  trustee  nor  its
affiliate   shall   be   required  to  reduce  or  waive  its
compensation for services provided  in  connection  with  the
investment,  and  management, and administration of the trust
estate because the trustee invests, reinvests, or retains the
trust  estate  in  a  mutual  fund,  so  long  as  the  total
compensation paid by the trust estate as trustee's  fees  and
mutual  fund fees, including any advisory or management fees,
in connection with the investment of  a  trust  estate  in  a
mutual  fund is reasonable; provided, however, that a trustee
may receive Rule 12b-1 fees equal to  the  amount  of   those
fees that would be paid to any other party.
(Source: P.A. 87-285; 87-895; 88-585, eff. 1-1-95.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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