South Carolina General Assembly
109th Session, 1991-1992

Bill 3476


                    Current Status

Introducing Body:               House
Bill Number:                    3476
Ratification Number:            229
Act Number:                     158
Primary Sponsor:                Barber
Type of Legislation:            GB
Subject:                        Fiduciaries
Date Bill Passed both Bodies:   Jun 06, 1991
Computer Document Number:       436/11093.DW
Governor's Action:              S
Date of Governor's Action:      Jun 12, 1991
Introduced Date:                Feb 12, 1991
Date of Last Amendment:         Jun 05, 1991
Last History Body:              ------
Last History Date:              Jun 12, 1991
Last History Type:              Act No. 158
Scope of Legislation:           Statewide
All Sponsors:                   Barber
                                Wilkins
                                J. Williams
                                Cole
                                Rama
                                L. Elliott
                                Mattos
                                Burch
                                Haskins
                                Jaskwhich
                                Gregory
                                Hodges
                                Koon
                                J.C.
                                Johnson
                                Corning
                                Scott
                                Sturkie
Type of Legislation:            General Bill

History


 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 Committee

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(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".

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 12th day of June, 1991.