Title 19 — Title 19
0 chapters · 382 sections in this title.
Ala. Code § 19-4A-1 Idle Funds Defined
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Idle funds are defined as collected income and principal cash balances received by a fiduciary and held awaiting investment in or distribution from a fiduciary account. As used in this chapter, the term “fiduciary account” shall mean any account for which the bank or trust compan…
Ala. Code § 19-4A-2 Investment in Accordance with Terms of Governing Document
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A bank or trust company duly authorized to exercise fiduciary powers through the operation of a trust department shall invest idle funds in each fiduciary account in accordance with the specific terms of the governing document. History: (Acts 1991, No. 91-129, p. 163, §1(b).)
Ala. Code § 19-4A-3 Short-Term Investment Vehicle
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In the absence of specific instructions in the governing document, the fiduciary shall invest idle funds in each fiduciary account in a short-term investment vehicle, which may include a deposit in an interest-bearing account, a money market mutual fund, or any other generally ac…
Ala. Code § 19-4A-4 Reasonable Rate of Return; Considerations
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In the absence of specific instructions in the governing document, the fiduciary shall select an investment vehicle for idle funds in each fiduciary account which should provide a reasonable rate of return, taking into consideration the income needs of the current income benefici…
Ala. Code § 19-4A-5 Investment in Timely Manner; No Obligation to Invest Funds Less Than
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$1,000. In the absence of specific instructions in the governing document, the fiduciary shall invest idle funds in each fiduciary account in a timely manner consistent with the technology employed by the fiduciary but not to exceed 10 business days after the receipt of collected…
Ala. Code § 19-4A-6 Compensation
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In the absence of specific instructions in the governing document, the fiduciary may receive compensation for the investment of idle funds by netting said compensation from the yield of the investment; provided, however, that disclosure of the compensation (expressed as a percent…
Ala. Code § 19-4A-7 Applicability
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The provisions of this chapter shall apply to all fiduciary accounts now existing or hereafter created, but only to the bank or trust company’s actions or inactions occurring after May 28, 1991. History: (Acts 1991, No. 91-129, p. 163, §1(g).)