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90_HB1035enr
760 ILCS 5/5.2 from Ch. 17, par. 1675.2
Amends the Trust and Trustees Act. Provides that a
trustee may invest or reinvest the trust estate in interests
in a unit investment trust (instead of investment trust).
Provides that a trustee may invest or reinvest the trust
estate in interests in any investment fund exempt from
registration. Provides that 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 acts as advisor or manager
or in any other role (instead of just advisor or manager)
solely on the basis that the trustee provides service to the
mutual fund and receives remuneration. Provides that a
trustee shall not be required to reduce or waive its
compensation for services provided in connection with the
administration of the trust estate because the trustee
invests, reinvests, or retains the trust estate in a mutual
fund. Effective immediately.
LRB9004021NTsb
HB1035 Enrolled LRB9004021NTsb
1 AN ACT to amend the Trusts and Trustees Act by changing
2 Section 5.2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Trusts and Trustees Act is amended by
6 changing Section 5.2 as follows:
7 (760 ILCS 5/5.2) (from Ch. 17, par. 1675.2)
8 Sec. 5.2. Investments in mutual funds. A trustee,
9 including a trustee of a common trust fund, may invest and
10 reinvest the trust estate in interests in any open-end or
11 closed-end management type investment company or unit
12 investment trust ("mutual fund") registered under the
13 Investment Company Act of 1940 or any investment fund exempt
14 from registration under the Investment Company Act of 1940,
15 any of these investment companies, unit investment trusts, or
16 investment funds being a "mutual fund" for purposes of this
17 Section, or may retain, sell, or exchange those interests,
18 provided that the portfolio of the mutual fund, as an entity,
19 is appropriate under the provisions of this Act. A trustee
20 shall not be prohibited from investing, reinvesting,
21 retaining, or exchanging any interests held by the trust
22 estate in any mutual fund for which the trustee or an
23 affiliate acts as advisor or manager or in any other role
24 solely on the basis that the trustee (or its affiliate)
25 provides services to the mutual fund and receives reasonable
26 remuneration for those services. Neither a trustee nor its
27 affiliate shall be required to reduce or waive its
28 compensation for services provided in connection with the
29 investment, and management, and administration of the trust
30 estate because the trustee invests, reinvests, or retains the
31 trust estate in a mutual fund, so long as the total
HB1035 Enrolled -2- LRB9004021NTsb
1 compensation paid by the trust estate as trustee's fees and
2 mutual fund fees, including any advisory or management fees,
3 in connection with the investment of a trust estate in a
4 mutual fund is reasonable; provided, however, that a trustee
5 may receive Rule 12b-1 fees equal to the amount of those
6 fees that would be paid to any other party.
7 (Source: P.A. 87-285; 87-895; 88-585, eff. 1-1-95.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.