Title 3B, Title 3B: ADMINISTRATION OF ESTATES--DECEDENTS AND OTHERS

3B:20-11.11 Construction of terms 11. The following terms or comparable language in a trust instrument, unless otherwise limited or modified by that instrument, shall be construed as authorizing any investment or strategy permitted under this act: "investments permissible by law …

3B:20-11.12 Applicability of act 12. This act shall apply to and govern trusts existing on and created after its effective date. As applied to trusts existing on its effective date, this act governs only actions or omissions occurring after that date. L.1997,c.26,s.12.

3B:20-11.2 Compliance by fiduciary with prudent investor rule 2. a. Except as provided in subsection b. of this section, a fiduciary who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule, as set forth in this a…

3B:20-11.3 Investments, management of trust assets by fiduciary 3. a. A fiduciary shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, th…

3B:20-11.4 Diversification of investments 4. A fiduciary shall diversify the investments of the trust unless the fiduciary reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. L.1997,c.26,s.4.

3B:20-11.5 Assets to be managed in interest of beneficiaries 5. A fiduciary shall invest and manage the trust assets solely in the interest of the beneficiaries. L.1997,c.26,s.5.

3B:20-11.6 Impartiality of fiduciary 6. If a trust has two or more beneficiaries, the fiduciary shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries. L.1997,c.26,s.6.

3B:20-11.7 Review of trust assets 7. Within six months after accepting trust assets, the fiduciary shall review the trust assets and shall make and implement decisions concerning the retention and disposition of assets received at the inception of the trust, in order to bring the…

3B:20-11.8 Incurrence of costs by fiduciary 8. In investing and managing trust assets, a fiduciary may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the fiduciary. A fiduciary who delegates investment …

3B:20-11.9 Rule expresses standard of conduct 9. The prudent investor rule expresses a standard of conduct, not outcome. Compliance with the rule is determined in light of the facts and circumstances existing at the time of the fiduciary's decision or action. L.1997,c.26,s.9.

3B:20-18 Authority to exchange or convert securities 3B:20-18. Authority to exchange or convert securities. Except as otherwise provided in the trust instrument, a fiduciary who holds securities in a trust estate issued by a corporation which has been recapitalized or reorganized…

3B:20-19 Fiduciary as issuing corporation 3B:20-19. Fiduciary as issuing corporation. An exchange or conversion of securities may be made pursuant to this article notwithstanding that the fiduciary which holds the securities in a trust estate is the same corporation which issued …

3B:20-21. Definitions As used in this article: a. "Banking institution" includes State chartered banks and national banking associations; b. "Bank holding company" means a bank holding company as defined in the Bank Holding Company Act of 1956 (Act of May 9, 1956, 70 Stat. 1933, …

3B:20-22. Authority to exchange or convert When a bank holding company which is a corporation acquires 80% or more of the outstanding capital stock of a banking institution, any shares of the capital stock of the banking institution held in a trust estate by a fiduciary may be ex…

3B:20-23 Banking institution acting as fiduciary 3B:20-23. Banking institution acting as fiduciary. An exchange or conversion of shares may be made pursuant to this article notwithstanding that the fiduciary which holds the shares in the trust estate is the banking institution wh…

3B:20-25 Application of article 3B:20-25. Application of article. This article shall not apply where a trust instrument contains provisions inconsistent with or contrary to the provisions of this article. Amended 1997, c.26, s.21.

3B:20-26. Short title This article shall be known and may be cited as the "Clearing Corporation Deposit Law of 1973." L.1981, c. 405, s. 3B:20-26, eff. May 1, 1982.

3B:20-27 Definitions 3B:20-27. Definitions. As used in this article: a. (Deleted by amendment, P.L.1997, c.26). b. "Securities" means instruments which are commonly dealt with on securities exchanges or markets or commonly recognized in any area in which they are issued or dealt …

3B:20-28. Deposit of securities by fiduciary Notwithstanding any other provision of law, a fiduciary holding securities in a trust estate, or any banking institution holding securities as a custodian or managing agent, or as custodian for a fiduciary, is authorized to deposit or …

3B:20-29. Merger of certificates deposited When securities are deposited, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of the clearing corporation with any other securities deposited in the cle…

3B:20-3. Corporate fiduciary may register securities in name of nominee without disclosing fiduciary capacity Any bank may, when acting as sole fiduciary or when acting as cofiduciary, with the consent of a cofiduciary or cofiduciaries, cause any certificates for shares of stock,…

3B:20-30. Records of securities deposited The records of the fiduciary and the records of a banking institution acting as custodian, as managing agent or as custodian for a fiduciary, shall at all times show the name of the party for whose account the securities are deposited. L.…

3B:20-31. Transfer of ownership in securities deposited Ownership of, and other interests in, securities deposited may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities. L.1981, c. 40…

3B:20-32. Rules and regulations governing banking institutions A banking institution depositing securities pursuant to this article shall be subject to rules and regulations as, in the case of State chartered institutions the Commissioner of the Department of Banking and, in the …

3B:20-33. Certification of securities deposited A banking institution acting as custodian for a fiduciary shall, on demand by the fiduciary, certify in writing to the fiduciary securities deposited by the banking institution in a clearing corporation for the account of the fiduci…

3B:20-34 Application of article 3B:20-34. Application of article. This article shall apply to any fiduciary holding securities in its fiduciary capacity, and to any banking institution holding securities as a custodian, managing agent or custodian for a fiduciary, acting on Janua…

3B:20-35. Construction of article Nothing contained in this article shall be construed as relieving a fiduciary depositing securities as authorized herein from the duty to account for all securities so deposited. L.1981, c. 405, s. 3B:20-35, eff. May 1, 1982.

3B:20-4. Corporate fiduciary liable for loss caused by acts of nominee The fiduciary or fiduciaries shall be liable for any loss caused by the acts of the nominee with respect to securities registered as provided in N.J.S. 3B:20-3. L.1981, c. 405, s. 3B:20-4, eff. May 1, 1982.

3B:20-5. Limitation on authority to register securities in name of nominee A fiduciary or fiduciaries may not register securities in the name of a nominee where any will, trust instrument or any order appointing or relating to any fiduciary or fiduciaries prohibits securities fro…

3B:20-7 Directions of court concerning the sale, conversion or retention of investments 3B:20-7. Directions of court concerning the sale, conversion or retention of investments. When securities or other property come into possession of a fiduciary as part of the assets of the tru…

3B:20-8 Protection afforded fiduciary continuing investments under court order 3B:20-8. Protection afforded fiduciary continuing investments under court order. A fiduciary shall not be held accountable for any loss by reason of continuing to hold the trust assets in accordance wi…

3B:20-9 Application to court upon change in conditions 3B:20-9. Application to court upon change in conditions. If, as a result of a change in conditions which occurs or which may be reasonably foreseen, the objects of the trust estate may be defeated in whole or in part by the i…