7-5-11. Self-dealing with trust property -- Own stock as trust property -- Policies
for dealing with trust securities.
(1) Except as provided in Section 7-5-7, in Title 75, or as authorized under the instrument
creating the relationship, a trust company shall not invest funds held as an agent or fiduciary in
stock or obligations of, or with such funds acquire property from, the trust company or any of its
directors, officers or employees, nor shall a trust company sell property held as an agent or
fiduciary to the company or to any of its directors, officers, or employees.
(2) A trust company may retain and vote stock of the trust company or of any of its
affiliates received by it as assets of any trust account or in any other fiduciary relationship of
which it is appointed agent or fiduciary, unless the instrument creating the relationship otherwise
provides.
(3) Every trust company shall adopt written policies and procedures regarding decisions
or recommendations to purchase or sell any security to facilitate compliance with federal and
state securities laws. These policies and procedures, in particular, shall prohibit the trust company
from using material inside information in connection with any decision or recommendation to
purchase or sell any security.
Amended by Chapter 6, 1982 General Session
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Last revised: Thursday, May 28, 2009