N.Y. Comp. Codes R. & Regs. tit. 3 § 22.23

Current through Register Vol. 46, No. 45, November 2, 2024

Section 22.23 - Short-term investment common trust funds

(a) Notwithstanding anything contained in section 22.5 of this Part to the contrary, all investments of a short-term investment common trust fund may be valued:

(1) by reference to appropriate valuations applied by a generally accepted pricing service; or

(2) at cost, if the plan of operation of such fund requires that:

(i) the type or category of investments of the fund shall comply with the rules and regulations of the Comptroller of the Currency pertaining to short-term investment funds, as in effect from time to time; and

(ii) in computing income, the difference between cost of investments and anticipated receipt on maturity of investments shall be accrued on a straight line basis.

(b) A participation may be admitted to, or withdrawn from, a short-term investment common trust fund at any time in the discretion of the trust company without regard to the notice requirements of section 22.6 of this Part for admissions and withdrawals.

(c) Notwithstanding any provision of section 22.6 of this Part to the contrary, the plan of operation of a short-term investment common trust fund may provide for purposes of admission and withdrawal of participations that the principal of the fund shall be determined by adding to value of the investments, as determined in accordance with the provisions of subdivision (a) of this section, the uninvested cash principal and other items of principal, and by deducting from the total thereof any liabilities, due or accrued, chargeable principal. For the purpose of computing the value per unit, the principal thus determined shall be divided by the number of existing units and such unit value together with a sum equal to the proportionate share of any income held or accrued and remaining undistributed at the time of valuation less the amount of income payable to unit holders accrued from the last income payment date may be the basis for admissions to and withdrawals from the short-term investment common trust fund. In determining the value of a unit, fractions less than.01 percent of the original unit value may be omitted, and any proportionate share of income attributable to a unit of the short-term investment common trust fund may be determined in accordance with the provisions of paragraph (d)(1) or (2) of this section.

(d) Notwithstanding any provision of section 22.7 of this Part to the contrary, the plan of operation of a short-term investment common trust fund may provide that for purposes of distributing income:

(1) the net income of each unit of a short-term investment common trust fund shall be determined daily on, or within a reasonable period after, each bank business day by dividing the net income of the short-term investment common trust fund by the number of units into which it is then divided, and as soon as practicable after the last calendar day of each month the net income of each unit during that month shall be distributed to the participating trust, estate or fund to which that unit is or was allocated on the day the net income was determined. If income has been accrued and distributed to a participating trust, estate or fund but has not actually been collected by the trust company at the time fixed for its payment, the trust company in its discretion may charge back to and collect from the participating trust, estate or fund the amount of the income so distributed or credited; or

(2) the net income of each unit of a short-term investment common trust fund shall be determined as of the last calendar day of each month, and within a reasonable period thereafter, by employing the dollar-day method, the total units of participation in the fund, as of the beginning of each day of the month, shall be aggregated for the entire monthly period, and the total number of month-units so calculated shall be divided into the total amount of net income of the fund for the month, which shall be the income earned and collected in the fund, or accrued on the investments held in the fund, as of the last day of the month, for the entire month, as reduced by all liabilities, expenses or other charges, due to accrued, chargeable to income. The net income per month-unit so calculated shall be termed the dollar-day value for each unit held on each day of the month involved. Each participant shall be entitled to a monthly income payment based on the aggregate number of month-units that participant held in the fund (computed by aggregating the units held in the fund by the participant as of the beginning of each day of the month, for all of the days that the participant held units of the fund during the month) multiplied by the unit dollar-day value so determined, and such payment shall be distributed to each participant as soon as practicable after the last calendar day of each month. If income has been accrued and distributed to a participating trust, estate or fund but has not actually been collected by the trust company at the time fixed for its payment, the trust company in its discretion may charge back to and collect from the participating trust, estate or fund the amount of income so distributed or credited.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 22.23