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Tex. Prop. Code § 113.171

COMMON TRUST FUNDS

Known as the Texas Trust Code

The act spans §§ 111–116 (165 sections).

Applied in 1 court decision — leading case Texas Commerce Bank, N.A. v. Grizzle Ex Rel. Grizzle (2002)

Most recently applied in Texas Commerce Bank, N.A. v. Grizzle Ex Rel. Grizzle (December 2002)

Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff

(a) A bank or trust company qualified to act as a fiduciary in this state may establish common trust funds to provide investments to itself as a fiduciary, including as a custodian under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state or to itself and others as cofiduciaries.

(b) The fiduciary or cofiduciary may place investment funds in interests in common trust funds if:

(1) the investment is not prohibited by the instrument or order creating the fiduciary relationship; and

(2) if there are cofiduciaries, the cofiduciaries consent to the investment.

(c) A common trust fund includes a fund:

(1) qualified for exemption from federal income taxation as a common trust fund and maintained exclusively for eligible fiduciary accounts; and

(2) consisting solely of assets of retirement, pension, profit sharing, stock bonus, or other employees' trusts that are exempt from federal income taxation.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.