(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.)
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