CHAPTER 367
S.P. 433 - L.D. 1379
An Act to Expand Options for Investment of Certain Municipal Trust Funds
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 30-A MRSA §5706, sub-§3, as amended by PL 1995, c. 206, §1, is further amended to read:
3. Mutual funds. In the shares of an 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, provided that the investments of the fund are limited to bonds and other direct obligations of the United States Government, as defined in section 5712, subsection 1 or repurchase agreements secured by bonds and other direct obligations of the United States Government, as defined in section 5712, subsection 1; or
Sec. 2. 30-A MRSA §5706, sub-§3-A is enacted 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;
B. No more than 50% of the assets of the trust are invested in mutual funds under this subsection; and
C. No more than 5% of the assets of the trust are invested in a single mutual fund under this subsection; or
Effective September 19, 1997, unless otherwise indicated.
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