Title 7, Chapter 1, Section 313
(a) As used in this Code section, the term "collective investment
fund" shall include a common trust fund and any other type of
collective investment fund.
(b) A trust company may establish and maintain collective
investment funds for the investment or reinvestment of property
(1) Is contributed by the trust company in a capacity in which it is authorized to act pursuant to Code Section 7-1-310; and
(2) Is eligible for contribution to a collective investment fund
under this Code section.
(c) Property shall be eligible for contribution whenever the
instrument, judgment, decree, or order under which the trust company
holds the property does not prohibit investment in the type of
collective investment fund involved, provided that, if the trust
company holds the property under circumstances limiting it to
investing the property in legal investments for fiduciaries, then it
may invest the property only in a collective investment fund limited
to assets authorized as legal investments for a fiduciary.
(d) The department shall regulate the establishment, operation, and
maintenance of collective investment funds. Such regulations of the
department shall comply with the general standards for exercise of
the regulatory power of the department under this chapter and, in
addition, shall be designed to assure:
(1) Ratably equal treatment of the participants in a fund by
imposing minimum requirements for the method and frequency of
valuation of participations in the fund, for the time and method
of admission or withdrawals of participations in the fund, and for
the determination of interests of participants in the assets and
income of the fund; and
(2) The competitive equality between trust companies and national
banks exercising fiduciary powers with respect to the authority to
establish and maintain collective investment funds to the extent
compatible with the general purposes of this chapter.
(e) No mistake made in good faith and in the exercise of due care in
connection with the administration of a collective investment fund
shall be deemed a violation of this Code section or of any other
duty of the trust company if, promptly after discovery of the
mistake, the trust company takes whatever action may be practicable
in the circumstances to remedy the mistake.
(f) Any other trust company or national bank with trust powers which
is a member of an affiliated group (as defined in Section 1504 of
the Internal Revenue Code) with a trust company maintaining
collective investment funds may participate in one or more such
funds as though they were maintained by the participating trust
company. Such participation may be made pursuant to agreement
providing for reasonable compensation for the trust company
maintaining the fund or funds.
(g) A trust company, in any capacity in which it may act under Code Section 7-1-310, may invest property collectively in accordance with the specific terms upon which it receives such property, without regard to the restrictions of this Code section.