Current Status Introducing Body:
HouseBill Number: 3476Ratification Number: 229Act Number: 158Primary Sponsor: BarberType of Legislation: GBSubject: FiduciariesDate Bill Passed both Bodies: Jun 06, 1991Computer Document Number: 436/11093.DWGovernor's Action: SDate of Governor's Action: Jun 12, 1991Introduced Date: Feb 12, 1991Date of Last Amendment: Jun 05, 1991Last History Body: ------Last History Date: Jun 12, 1991Last History Type: Act No. 158Scope of Legislation: StatewideAll Sponsors: Barber Wilkins J. Williams Cole Rama L. Elliott Mattos Burch Haskins Jaskwhich Gregory Hodges Koon J.C. Johnson Corning Scott SturkieType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3476 ------ Jun 12, 1991 Act No. 158 3476 ------ Jun 12, 1991 Signed by Governor 3476 ------ Jun 06, 1991 Ratified R 229 3476 House Jun 06, 1991 Concurred in Senate amendment, enrolled for ratification 3476 Senate Jun 05, 1991 Amended, read third time, returned with amendment 3476 Senate May 30, 1991 Read second time, notice of general amendments 3476 Senate May 22, 1991 Committee Report: Favorable 11 with amendment 3476 Senate May 07, 1991 Introduced, read first time, 11 referred to Committee 3476 House May 02, 1991 Read third time, sent to Senate 3476 House May 01, 1991 Read second time 3476 House Apr 25, 1991 Debate adjourned until Tuesday, April 30 3476 House Apr 17, 1991 Committee Report: Favorable 25 3476 House Feb 12, 1991 Introduced, read first time, 25 referred to CommitteeView additional legislative information at the LPITS web site.
(A158, R229, H3476)
AN ACT TO AMEND SECTION 62-7-302, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND RESPONSIBILITIES OF A FIDUCIARY, SO AS TO AUTHORIZE FIDUCIARIES TO INVEST IN MUTUAL FUNDS SPONSORED BY AFFILIATED ORGANIZATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Fiduciary may invest in certain mutual funds
SECTION 1. Section 62-7-302(a) of the 1976 Code, as last amended by Act 521 of 1990, is further amended by adding:
"(6) invest and reinvest in the securities of an open-end or closed-end management investment company or of an investment trust registered under the Investment Company Act of 1940, as amended. A bank or trust company may invest in these securities even if the bank or trust company, or an affiliate of the bank or trust company, provides services to the investment company or investment trust such as that of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise, and receives reasonable remuneration for those services."
Powers of fiduciary
SECTION 2. Section 62-7-302(a)(4) and (5) of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:
"(4) retain the securities into which corporate securities owned by the fiduciary may be converted or which may be derived therefrom as a result of merger, consolidation, stock dividends, splits, liquidations, and similar procedures (and may exercise by purchase or otherwise any rights, warrants, or conversion features attaching to any such securities);
(5) purchase or otherwise acquire and retain any security underwritten by a syndicate, even if the fiduciary or its affiliate (defined as any entity which owns or is owned by, in whole or in part, the fiduciary or is owned by the same entity that owns the fiduciary) participates or has participated as a member of the syndicate, provided the fiduciary does not purchase the security from itself, its affiliate, or from another member of the underwriting syndicate or its affiliate pursuant to an implied or express reciprocal agreement between the fiduciary or its affiliate, and such other member or its affiliate, to purchase all or part of each other's underwriting participation commitment within the syndicate. The propriety of an investment decision is to be determined by what the fiduciary knew or should have known at the time of the decision about the inherent nature and expected performance of the investment, the attributes of the portfolio, the general economic conditions, the anticipated tax consequences of the investment, the anticipated duration of the fiduciary account, the needs and objectives of the beneficiaries of the account, and other pertinent circumstances as they existed at the time of the decision. Any determination of liability for investment performance shall consider not only the performance of a particular investment but also the performance of the portfolio as a whole. Any fiduciary acting under a governing instrument shall not be liable to anyone whose interests arise from that instrument for the fiduciary's good faith reliance on the express provisions of such instrument. The standards set forth in this section may be expanded, restricted, or eliminated by express provisions in a governing instrument; and".
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 12th day of June, 1991.