DFI-SB 17.09(1)(1) Private trusts. Funds held by a savings bank in a fiduciary capacity shall be invested in accordance with the instrument establishing the fiduciary relationship and local law. If the instrument does not specify the character or class of investments to be made and does not give the savings bank, its directors, or its officers investment discretion in the matter, funds held under the instrument may be invested in any investment in which state chartered corporate fiduciaries may invest under local law.

DFI-SB 17.09(2)(2) Court trusts. If, under local law, corporate fiduciaries appointed by a court are permitted to exercise discretion in investments, or if a savings bank acting as fiduciary under appointment by a court is vested with discretion in investments by an order of the court, funds of the accounts may be invested in any investments which are permitted by local law. Otherwise, a savings bank acting as fiduciary under appointment by a court shall make all investments of funds in such accounts under an order of that court. The orders in either case shall be preserved with the fiduciary records of the savings bank.

DFI-SB 17.09(3)(3) Collective investment of trust funds. The collective investment of funds received or held by a savings bank as fiduciary is governed by ss. DFI-SB 17.13 and 17.14.

DFI-SB 17.10(1)(1) Purchases. Unless authorized by the instrument creating the relationship, or by court order or local law, funds held by a savings bank as fiduciary shall not be invested in:

DFI-SB 17.10(1)(a)(a) Stock or obligations of, or property acquired from, the savings bank or its directors, officers, or employees, or individuals with whom there exists a connection, or organizations in which there exists an interest, which may affect the exercise of the best judgment of the savings bank in acquiring the property; or

DFI-SB 17.10(2)(2) Loans. No savings bank may lend any officer, director, or employee any funds held in trust under the powers conferred by this chapter.

DFI-SB 17.10(3)(3) Sale or transfer. Property held by a savings bank as fiduciary shall not be sold or transferred, by loan or otherwise, to the savings bank or its directors, officers, or employees, or to individuals with whom there exists a connection, or organizations in which there exists such an interest, which may affect the exercise of the best judgment of the savings bank in selling or transferring the property, or to affiliates of the savings bank or their directors, officers or employees, except:

DFI-SB 17.10(3)(b)(b) The savings bank may, if it has been advised by its counsel in writing that it has incurred as fiduciary a contingent or potential liability and desires to relieve itself from the liability, so sell or transfer property with the approval of the board of directors and the division. The savings bank, upon the consummation of the sale or transfer, shall make reimbursement in cash at no loss to the account;

DFI-SB 17.10(4)(4) Investment in stock of savings bank. Except as provided in s. DFI-SB 17.08, funds held by a savings bank as fiduciary shall not be invested by the purchase of stock or obligations of the savings bank or its affiliates unless authorized by the instrument creating the relationship or by court order or by local law. However, if the retention of stock or obligations of the savings bank or its affiliates is authorized by the instrument creating the relationship or by court order or by local law, it may exercise rights to purchase its own stock or securities convertible into its own stock when offered pro rata to stockholders, unless forbidden by local law. When the exercise of rights or receipt of a stock dividend results in fractional share holdings, additional fractional shares may be purchased to complement the fractional shares so acquired. In elections of directors, a savings bank’s share held by the savings bank as sole trustee, whether in its own name as trustee or in the name of its nominee, may not be voted by the registered owner unless, under the terms of the trust, the manner in which the shares shall be voted may be determined by a donor or beneficiary of the trust and the donor or beneficiary actually directs how the shares will be voted.

DFI-SB 17.10(5)(5) Transactions between accounts.

DFI-SB 17.10(5)(a)(a) A savings bank may sell assets held by it as fiduciary in one account to itself as fiduciary in another account if the transaction is fair to both accounts and if such transaction is not prohibited by the terms of any governing instrument or by local law.

DFI-SB 17.10(5)(b)(b) A savings bank may make a loan to an account from the funds belonging to another account, when the making of loans to a designated account is authorized by the instrument creating the account from which the loans are made, and is not prohibited by local law, and the terms of the transaction are fair to all accounts.

DFI-SB 17.11(1)(1) Segregation of trust assets and joint custody. The investments of each account shall be kept separate from the assets of the savings bank, and shall be placed in the joint custody or control of not fewer than 2 of the officers or employees of the savings bank designated for that purpose either by the board of directors of the savings bank or by one or more officers designated by the board of directors of the savings bank, and all such officers and employees shall be adequately bonded. To the extent permitted by law, a savings bank may permit the investments of a fiduciary account to be deposited elsewhere.