§ 5241 Corporate Trust Investment Deviation

Key Takeaways

•Courts can sometimes let a company break the rules of a trust or agreement about how they handle money or investments.
•The court can only do this in special cases where it’s really needed.
•The Attorney General (a top lawyer for the state) must be told about this, and they can step in if they want.

Example

A company has a rule that it can only invest money in safe things like bonds, but they see a chance to invest in something riskier that could help a lot of people, like building affordable houses.

The company can ask a court for permission to break their own rule. The court might say yes if it’s a good reason. But they have to tell the Attorney General first, who can say if they think it’s a bad idea.

Nothing in Section 5240 shall abrogate or restrict the power of the appropriate court in proper cases to direct or permit a corporation to deviate from the terms of a trust or agreement regarding the making or retention of investments. Notice of such action or proceeding shall be given to the Attorney General who may intervene. (Amended by Stats. 1979, Ch. 724.)

Key Takeaways

•Courts can sometimes let a company break the rules of a trust or agreement about how they handle money or investments.
•The court can only do this in special cases where it’s really needed.
•The Attorney General (a top lawyer for the state) must be told about this, and they can step in if they want.

Example

A company has a rule that it can only invest money in safe things like bonds, but they see a chance to invest in something riskier that could help a lot of people, like building affordable houses.

Key Takeaways

Example

Key Terms

References

§ 5241 Corporate Trust Investment Deviation

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References