2.59.1605 MUTUAL FUNDS
(1) Under the authority
of 32-1-424(1) (b) , MCA, and subject to its restrictions, banks may invest in
mutual funds whose shares represent only those United States obligations listed
in ARM 2.59.1601.
(2) Shareholders must have a proportionate
undivided interest in any mutual fund utilized under this rule.
(3) Shareholders must be shielded from personal
liability for acts or obligations of the mutual fund.
(4) The bank's investment policy, as formally
approved by its board of directors, must specifically provide for such
investments. Prior approval of the
board of directors must be obtained for initial investments in specific mutual
funds and recorded in the official board minutes. Procedures, standards and controls for managing such investments
must be implemented prior to the investment being made.
History: Sec. 32-1-433, MCA; IMP, Sec. 32-1-424, 32-1-433, MCA; NEW, 2002 MAR p. 166, Eff. 2/1/02.