Ariz. Admin. Code § R20-4-815 - Collective Investments

A. All collective investments made by a trust department or trust company shall be in a common trust fund established under A.R.S. § 6871 and maintained by the trust department or trust company exclusively for the collective investment and reinvestment of funds contributed by the trust department or trust company acting as a fiduciary. A trust department or trust company shall not establish a common trust fund unless it first:

1. Prepares a written plan regarding the common trust fund; and

2. Obtains its board of directors' approval of the plan, evidenced by a duly adopted resolution or the board's unanimous written consent.

B. The plan shall describe the common trust fund's operational details, including a description of:

1. The trust department's or trust company's investment powers and investment policy over all funds deposited in the common trust fund,

2. The manner for allocating the common trust fund's income and losses,

3. The criteria for admission to or withdrawal from participating in the common trust fund, and

4. The method for valuing assets in the common trust fund and the frequency of valuation.

C. A trust department or trust company shall advise all persons having an interest in its common trust fund of the existence of the plan described in subsection (B), and shall provide a copy of the plan upon request.

D. The annual report required under Section R20-4-805(A) shall include all common trust funds operated by the trust department or trust company.

Notes

Ariz. Admin. Code § R20-4-815

Adopted effective June 30, 1977 (Supp. 77-3). R20-4-815 recodified from R4-4-815 (Supp. 95-1). Amended by final rulemaking at 6 A.A.R. 2471, effective June 8, 2000 (Supp. 00-2). Amended by final rulemaking at 8 A.A.R. 2718, effective June 6, 2002 (Supp. 02-2). Amended by final rulemaking at 29 A.A.R. 1952, effective 10/8/2023.