Illinois Compiled Statutes
Chapter 760 - TRUSTS AND FIDUCIARIES
760 ILCS 45/ - Common Trust Fund Act.

(760 ILCS 45/1) (from Ch. 17, par. 2101)
Sec. 1.
Short title.
This Act may be cited as the "Common Trust Fund Act".

(Source: Laws 1943, vol. 1, p. 230.)

(760 ILCS 45/2) (from Ch. 17, par. 2102)
Sec. 2.
Definitions.) As used in this Act, unless the context otherwise requires:
(a) "Bank or trust company" means any state bank, any national bank,
any trust company or any other corporation, qualified to act as a
fiduciary in this State.
(b) "Affiliate" means any state bank, any national bank, any trust company
or any other corporation, which is qualified to act as a fiduciary in this or any other
State, and which is a member of the same affiliated group (within the meaning
of Section 1504 of the Internal Revenue Code of 1954, as amended) of which
the bank or trust company maintaining the particular common trust fund is a member.
(c) "Fiduciary" means a bank or trust company or an affiliate acting in
any of the following capacities, namely: testamentary trustee, trustee appointed
by any court, trustee or agent under any written agreement, declaration
or instrument of trust, executor, administrator, guardian,
or custodian under a uniform transfers to minors act.
(d) "Common trust fund" means a fund maintained by a bank or trust company
exclusively for the collective investment and reinvestment of moneys contributed
thereto by the bank or trust company or any affiliate thereof, in the capacity
of a fiduciary or co-fiduciary.
(e) "Custodian under a uniform transfers to minors act", means an account
which the Secretary of the Treasury of the United States has determined
is established pursuant to a State law which is substantially similar to
the "Illinois Uniform Transfers to Minors Act"
and with respect to which account the bank or trust company serving as custodian
has established to the satisfaction of the Secretary of the Treasury of
the United States that it has duties and responsibilities similar to duties
and responsibilities of a trustee or guardian.

(Source: P.A. 84-915.)

(760 ILCS 45/3) (from Ch. 17, par. 2103)
Sec. 3. Establishment of common trust fund. Any bank or trust company
may, at and during such time as it is qualified to act as a fiduciary in
this State, establish, maintain, and administer one or more common trust
funds for the purpose of furnishing investments to itself as a fiduciary,
or to itself and another or others as co-fiduciaries. An investment in a
common trust fund does not constitute an investment in the various
securities composing the common trust fund, but is an investment in the
fund as an entity. A bank or trust company, in its capacity as a fiduciary
or co-fiduciary, whether that fiduciary capacity arose before or is created
after this Act takes effect, may invest funds that it holds for investment
in that capacity in interests in one or more common trust funds, subject to
the following limitations:
(Source: P.A. 101-48, eff. 1-1-20.)

(760 ILCS 45/3.1) (from Ch. 17, par. 2104)
Sec. 3.1.

Participation by affiliates.) Any bank or trust company may include
for the purpose of collective investment in any common trust fund or funds
established, maintained and administered by it, funds held by an affiliate
in its capacity as fiduciary or co-fiduciary, provided that the funds so
held would be eligible for investment in the common trust fund
or funds, had such common trust fund or funds been established, maintained
and administered by the affiliate. Such participation by an affiliate may
be pursuant to agreement providing for payment of reasonable compensation
by the affiliate to the bank or trust company maintaining the fund or funds.

(Source: P.A. 80-772.)

(760 ILCS 45/4) (from Ch. 17, par. 2105)
Sec. 4.

Written plan.) Each common trust fund shall be established, administered
and maintained in accordance with a written declaration of trust, herein
referred to as the "plan", prepared by the bank or trust company and approved
by resolution of its board of directors. The plan shall make provision,
not inconsistent with this Act, as to the following matters: (1) the manner
in which the fund is to be operated, (2) the investment powers of the bank
or trust company with respect to the fund, including the character and kind
of investments which may be purchased for the fund, (3) the allocation and
apportionment of income, profits and losses, (4) the terms and conditions
governing the admission or withdrawal of investments or participations in
the fund, (5) the auditing and settlement of accounts of the bank or trust
company with respect to the fund, (6) the basis and method of valuing assets
in the fund, (7) the basis upon which the fund may be terminated, and (8)
such other matters as may be necessary or proper to define clearly the rights
of participants in the common trust fund. The plan may provide that if a
bond or other obligation for the payment of money is acquired as an investment
for any common trust fund at a cost in excess of the par or maturity value
thereof, such excess cost need not be amortized out of income within the
common trust fund itself; if the plan, however, should provide for the amortization
of such excess cost out of the income of such obligation, then such amortization
shall be made during but not beyond the period that such obligation is held
as an investment in such fund by deducting from each receipt of income and
adding to principal an amount equal to the sum obtained by dividing such
excess cost by the number of periodic payments of income to accrue on such
obligation from the date of such acquisition until its maturity date. The
plan may provide that Series G United States Savings Bonds, or any other
United States Bonds of any kind or series which are purchasable at a price
equivalent to the maturity value thereof and which provide for a decline
in redemption value at any time or times between purchase and maturity,
(a) may be purchased at any time for the common trust fund, (b) may be
transferred from a participating trust to the common trust fund at par
or maturity value in lieu of a contribution of money, and (c) shall at
all times and for all purposes of the common trust fund be valued at par
or maturity value. The provisions of the plan shall control all
participations in the fund and the rights and benefits of all persons
interested in such participations, as beneficiaries or otherwise. The
plan may be amended from time to time pursuant to resolution of the
board of directors of the bank or trust company. A copy of the plan
shall be available at the principal office of the bank or trust company
and any affiliate thereof during all regular business hours, for inspection
by any person having
an interest in a trust, any funds of which are invested in a
participation in the common trust fund, and upon reasonable request a
copy of the plan shall be furnished to such person.

(Source: P.A. 80-772.)

(760 ILCS 45/5) (from Ch. 17, par. 2106)
Sec. 5.
Management of the common trust funds.
Title to all assets of the
common trust fund shall, at all times, be vested in the bank or trust company,
as trustee of the common trust fund, and such assets shall be deemed to
be held by the bank or trust company, as such trustee. The bank or trust
company may, however, hold any of the assets of a common trust fund in the
name of a nominee, provided the records of such common trust fund clearly
show the ownership of the asset to be in the bank or trust company, as trustee
of the common trust fund, and the facts regarding its holding. The bank
or trust company shall have the exclusive management and control of each
common trust fund administered by it, and the sole right at any time to
sell, convert, reinvest, exchange, transfer or otherwise change or dispose
of the assets comprising the fund. The bank or trust company shall, at least
once each year, cause an audit of each common trust fund administered by
it to be made by a certified public accountant or a public accountant registered
in the State of Illinois. A copy of each
such audit shall be available at the principal office of the bank or
trust company and any affiliate thereof during all regular business hours,
for inspection by any
person having an interest in a trust, any funds of which are invested in
a participation in such common trust fund, and upon reasonable request a
copy of any such audit shall be furnished to such person. The reasonable
expense of any such audit made by an independent certified public
accountant or by an independent public accountant registered in the
State of Illinois may be charged to the principal or income of the
common trust fund, or partly to each, as the bank or trust company may
determine. The bank or trust company may charge a fee for the management
of any common trust fund administered by it, and such fee may be charged
in whole or in part against the common trust fund, provided that the
fractional part of such fee proportionate to the interest of each
participant shall not, when added to any other compensations charged by
the bank or trust company or any affiliate thereof to the participant, exceed
the total amount of
compensations which would have been charged to said participant if no
assets of said participant had been invested in participations in the
fund. If, however, the common trust is invested in a mutual fund for which
the bank or trust company or an affiliate provides services and receives
compensation, then the total compensation paid by a participant to the bank or
trust company and its affiliates, directly or indirectly, including any common
trust fund fees, mutual fees, advisory fees, and management fees, must be
reasonable. The bank or trust company may reimburse itself out of the common
trust fund for such reasonable expense incurred by it in the
administration of such fund as would have been chargeable to the
respective participating fiduciary accounts, if incurred in the separate
administration of those accounts.

(Source: P.A. 89-344, eff. 8-17-95.)

(760 ILCS 45/6) (from Ch. 17, par. 2107)
Sec. 6.

Participation in common trust fund.) The bank or trust company
shall designate clearly upon its records the names of the fiduciary accounts
on behalf of which the bank or trust company, or any affiliate thereof,
as fiduciary or co-fiduciary, owns a participation in the common trust fund,
and the extent of the interest of such fiduciary accounts therein. No interest
in a common trust fund shall be negotiable or assignable. No fiduciary account
holding a participation in a common trust fund shall have, or be deemed
to have, any ownership or interest in any particular asset or investment
in the common trust fund, but shall have only its proportionate beneficial
interest in the fund as a whole.

(Source: P.A. 80-772.)

(760 ILCS 45/7) (from Ch. 17, par. 2108)
Sec. 7.
Severability.
If any provision of this Act or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect the other
provisions or applications of the Act which can be given effect without the
invalid provision or application, and to this end the provisions of this
Act are declared to be severable.

(Source: Laws 1943, vol. 1, p. 230.)

(760 ILCS 45/8)
Sec. 8.
Reliance on Commissioner of Banks and Real Estate.
No fiduciary or
other person shall be liable under this Act for any act done or omitted in good
faith in conformity with any rule, interpretation, or opinion
issued by the Commissioner of Banks and Real Estate, notwithstanding that after
the act or omission has occurred, the rule, opinion, or
interpretation upon which reliance is placed is amended, rescinded, or
determined by judicial or other authority to be invalid for any reason.

(Source: P.A. 90-161, eff. 7-23-97.)