§ 11-2.2 Power to invest\n (a) Investment of trust funds\n (1) A fiduciary holding funds for investment may invest the same in\nsuch securities as would be acquired by prudent men of discretion and\nintelligence in such matters who are seeking a reasonable income and\npreservation of their capital, provided, however, that nothing in this\nsubparagraph shall limit the effect of any will, agreement, court order\nor other instrument creating or defining the investment powers of a\nfiduciary, or shall restrict the authority of a court of proper\njurisdiction to instruct the fiduciary in the interpretation or\nadministration of the express terms of any will, agreement or other\ninstrument or in the administration of the property under the\nfiduciary's care. This paragraph shall apply to any investment, made on\nor after May first, nineteen hundred seventy, of funds held for\ninvestment by a fiduciary, and to all estates and trusts now in\nexistence or which may hereafter come into existence.\n A bank, trust company or paid professional investment advisor (whether\nor not registered under any federal securities or investment law) which\nserves as a fiduciary, and any other fiduciary representing that it has\nspecial investment skills shall exercise such diligence in investing the\nfunds for which the fiduciary is responsible, as would customarily be\nexercised by prudent men of discretion and intelligence having special\ninvestment skills. This paragraph shall apply to any investment, made on\nor after January first, nineteen hundred eighty-six, of the funds held\nfor investment by such a fiduciary and to all estates and trusts now in\nexistence or which may hereafter come into existence.\n This subparagraph shall not apply to any investment, made on or after\nJanuary first, nineteen hundred ninety-five, of funds held for\ninvestment by a fiduciary, and to all estates and trusts in existence or\nwhich may come into existence on or after January first, nineteen\nhundred ninety-five.\n (2) A trustee or other person holding trust funds may require such\npersonal bonds or guaranties of payment of principal or interest or\nboth, or such other bonds or guaranties, to accompany investments as may\nseem prudent, and may from time to time adjust, reduce, modify, postpone\nor compound the same, or any terms and conditions thereof, including the\nrate of interest, or any installments thereof, and may at any time\nrelease the same, and all premiums paid on such guaranties or fees for\nservicing mortgages may be charged to or paid out of income, provided\nthat such charge or payment is not more than at the rate of one-half of\none per centum per annum on the par value of such investments. But no\ntrustee shall purchase securities hereunder from himself.\n (3) Whenever a trustee or other person holding trust funds has\nheretofore lawfully invested or shall hereafter lawfully invest any\ntrust funds in a share or part of a bond and mortgage or any part\ninterest therein or shall hold any such share, part or part interest by\napportionment, transfer, representation or otherwise, if the property\nsubject to such mortgage is purchased pursuant to foreclosure sale or\nacquired by voluntary conveyance by or in behalf of such trustee or\nother person holding trust funds and another person, including another\nsuch trustee, owning another such share, part or part interest in such\nbond and mortgage, such trustee or other person holding trust funds or a\nperson purchasing or acquiring title in behalf of such trustee may\nconvey the undivided interest in such real property so purchased or\nacquired to a corporation, formed for the purpose of acquiring such\nproperty, in exchange for a proportionate part of the capital stock and\nthe bonds, if any, of such corporation; provided that the other person,\nby or in whose behalf such property has been purchased or acquired,\nshall exchange his undivided interest in such property for a\nproportionate part of
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