A Few Facts About The...

UNIFORM COMMON TRUST FUND ACT

PURPOSE:
A common trust fund is a group of securities set aside by a trustee for investment by two or more trusts operated by the same trustee. The purposes of such a common or joint investment fund are to diversify the investments of the several trusts and thus spread the risk of loss, and to make it easy to invest any amount of trust funds quickly and with a small amount of trouble. This act is a simple enabling statute which will allow banks and trust companies to set up one or more common trust funds composed entirely of legal trusts investments for its fiduciary funds.

ORIGIN:
Completed by the Uniform Law Commissioners in 1938, and amended in 1952.

ENDORSED BY:
American Bar Association