Memorandum re article 9 of the utc




Дата канвертавання27.04.2016
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MEMORANDUM RE ARTICLE 9 OF THE UTC

MEMORANDUM RE ARTICLE 9 OF THE UTC
Material in black is statutory text, material in italics is quoted from the commentary to the 2005 version of the UTC as they appear on the NCCUSL website (www.nccusl.org) and material in blue-gray reflects comments made by the Committee.

UNIFORM PRUDENT INVESTOR ACT

General Comment

            Because of the widespread adoption of the Uniform Prudent Investor Act, no effort has been made to disassemble and integrate the Uniform Prudent Investor Act into the Uniform Trust Code. States adopting the Uniform Trust Code that have previously enacted the Prudent Investor Act are encouraged to reenact their version of the Prudent Investor Act as Article 9 of the Uniform Trust Code. Reenacting the Uniform Prudent Investor Act as a unit will preserve uniformity with States that have enacted the Uniform Prudent Investor Act in free-standing form.


            The Uniform Prudent Investor Act prescribes a series of duties relevant to the investment and management of trust property. The Uniform Trust Code, Article 8 contains duties and powers of a trustee relevant to the investment, administration, and distribution of trust property. There is therefore significant overlap between Article 8 and the Prudent Investor Act. Where the Uniform Prudent Investor Act and Uniform Trust Code are duplicative, enacting jurisdictions are encouraged to enact the Uniform Prudent Investor Act in this article but without the provisions already addressed in Article 8 of the Uniform Trust Code. The duplicative provisions of the Uniform Prudent Investor Act and Article 8 of this Code are as follows:
                                    Prudent Investor Act            Article 8

            Special skills                    2(f)                         806

            Loyalty                            5                             802

            Impartiality                     6                            803

            Investment costs             7                             805

            Delegation                      9                             807


            Deleting these duplicative provisions leaves the following sections of the Uniform Prudent Investor Act for enactment in this article:
            Section 1                     Prudent Investor Rule

            Section 2 (a)-(e)          Standard of Care; Portfolio Strategy; Risk and

                                                Return Objectives

            Section 3                     Diversification

            Section 4                     Duties at Inception of Trusteeship

            Section 8                     Reviewing Compliance



            Section 10                   Language Invoking Standard of [Act]





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