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SB 1235 - Current law provides that a trustee may invest and reinvest trust assets in securities or obligations of any state or its political subdivisions, including securities that are underwritten by the trustee or an affiliate thereof. This act provides that in addition to the authority in current law, the trustee may invest trust assets in U.S. government obligations, or other interests in any open-end or closed-end management investment company or investment trust registered under federal law, provided that the governing instrument requires or permits investment in U.S. government obligations, and provided that the portfolio of the investment company or investment trust is limited to U.S. government obligations and to repurchase agreements fully collateralized by such obligations, and provided that the investment company or trust takes delivery of such collateral. The act also provides that a bank, trust company, or affiliate, when acting as an investment advisor, custodian, or otherwise in a fiduciary capacity with respect to the investment of assets, may invest and reinvest such assets subject to the standards contained in this act. ALEXA PEARSON
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