1. A bank which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the bank as a fiduciary or agent, invest in the securities of a management investment trust or management investment company if:
(a) The investment trust or investment company is registered pursuant to the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.; and
(b) The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship.
2. A bank or an affiliate of the bank may provide services to the investment trust or investment company, including, without limitation, acting as an investment adviser, custodian, transfer agent, registrar, sponsor, distributor or manager and may receive reasonable compensation for the services. The manner in which the compensation is calculated must be disclosed to the person who is currently receiving the benefits of the fiduciary or agency relationship with the bank. The disclosure may be made by a prospectus, a statement of account or otherwise.
3. A bank may deposit money held by the bank as a fiduciary or agent with an affiliate before investing or making other disposition of the money.
(Added to NRS by 1991, 822)
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