Public Act 90-0297 of the 90th General Assembly
Public Act 90-0297
HB1035 Enrolled LRB9004021NTsb
AN ACT to amend the Trusts and Trustees Act by changing
Section 5.2.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Trusts and Trustees Act is amended by
changing Section 5.2 as follows:
(760 ILCS 5/5.2) (from Ch. 17, par. 1675.2)
Sec. 5.2. Investments in mutual funds. A trustee,
including a trustee of a common trust fund, may invest and
reinvest the trust estate in interests in any open-end or
closed-end management type investment company or unit
investment trust ("mutual fund") registered under the
Investment Company Act of 1940 or any investment fund exempt
from registration under the Investment Company Act of 1940,
any of these investment companies, unit investment trusts, or
investment funds being a "mutual fund" for purposes of this
Section, or may retain, sell, or exchange those interests,
provided that the portfolio of the mutual fund, as an entity,
is appropriate under the provisions of this Act. A trustee
shall not be prohibited from investing, reinvesting,
retaining, or exchanging any interests held by the trust
estate in any mutual fund for which the trustee or an
affiliate acts as advisor or manager or in any other role
solely on the basis that the trustee (or its affiliate)
provides services to the mutual fund and receives reasonable
remuneration for those services. Neither a trustee nor its
affiliate shall be required to reduce or waive its
compensation for services provided in connection with the
investment, and management, and administration of the trust
estate because the trustee invests, reinvests, or retains the
trust estate in a mutual fund, so long as the total
compensation paid by the trust estate as trustee's fees and
mutual fund fees, including any advisory or management fees,
in connection with the investment of a trust estate in a
mutual fund is reasonable; provided, however, that a trustee
may receive Rule 12b-1 fees equal to the amount of those
fees that would be paid to any other party.
(Source: P.A. 87-285; 87-895; 88-585, eff. 1-1-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.