Sec. 1. 30-A MRSA §5706, sub-§3-A, as enacted by PL 1997, c. 367, §2, is amended to read:

3-A. Mutual funds for trusts governed by the United States Internal Revenue Code, Section 501(c)(3). In the case of a trust fund that is governed by the United States Internal Revenue Code, Section 501 (c) (3) (1997), in the shares of any investment company registered under the United States Investment Company Act of 1940, Public Law 76-768, whose shares are registered under the United States Securities Act of 1933, Public Law 73-22, as long as:

A. The investment is approved by the municipal officers at a public meeting; and

B. No more than 50% of the assets of the trust are invested in mutual funds under this subsection; and or

C. No more than 5% of the assets of the trust are invested in a single mutual fund under this subsection; or

SUMMARY

This bill allows a municipality that holds funds of a nonprofit trust to invest more than 5% of the assets of that trust in a single mutual fund.