Any sum of money, which is collected or received by any such corporation in its trust
capacity, and which is not required for the purposes of the trust, or which is not
to be accounted for within one year from the date of collection, receipt, or deposit,
must be invested by the corporation as soon as practicable.
In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing
the property for the benefit of another, the trustee shall exercise the judgment and
care under the circumstances then prevailing, which persons of prudence, discretion,
and intelligence exercise in the management of their own affairs, not in regard to
speculation but in regard to the permanent disposition of their funds, considering
the probable income as well as the probable safety of their capital. Within the limitations of the foregoing standard, the trustee is authorized to acquire
and retain every kind of property, real, personal, or mixed, and every kind of investment,
specifically including but not by way of limitation, bonds, debentures, and other
corporate obligations and stocks, preferred or common, including investment trusts,
mutual funds, money market funds, and other similar funds in which the trustee or
any of its affiliates may have a beneficial interest, which persons of prudence, discretion,
and intelligence acquire or retain for their own account, and within the limitations
of the foregoing standard, the trustee may retain property properly acquired without
limitation as to time and without regard to its suitability for original purchase. The net interest and profits of such investments, less the reasonable charges and
disbursements of the corporation in connection therewith, must be accounted for and
paid over as a part of the trust. The net accumulations of interest and profits likewise must be invested and reinvested
as a part of the principal, and such investments must be received and allowed in the
settlement of the trust.
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