SCS SB 1235 -- MISSOURI UNIFORM TRUST CODE

SPONSOR:  Justus (Pratt)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Judiciary by a vote of 10 to 0.

This substitute adds United States government obligations, either
directly or in the form of fully collateralized securities of any
open- or closed-end management type investment company or trust
registered pursuant to the Investment Company Act of 1940, to the
types of securities in which a trustee may invest and reinvest
trust assets under the Missouri Uniform Trust Code.  Any bank or
trust company when acting as an investment advisor or custodian
in a fiduciary capacity with respect to the investment of trust
assets will be subject to the Missouri Prudent Investor Act.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill makes three technical
changes to the Missouri Uniform Trust Code.  The bill makes the
Prudent Investor Act standards applicable to the trust code,
corrects an intersectional reference, and allows investment in
mutual funds investing in governmental securities.  Many trustees
believed that the act only allowed direct investment in
governmental-backed securities and not mutual fund portfolios
that invested in the securities.  The bill explicitly allows
mutual fund investment by trustees.

Testifying for the bill were Senator Justus; Stinson, Morrison,
Hecker, LLP; and Missouri Bankers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:13 pm