Section 0780-05-10-.10 - INVESTMENT OF TRUST FUNDS(1) A financial institution acting as trustee of trust funds under these rules shall invest such funds in accordance with applicable law. In so investing, such trustee shall exercise the judgement and care under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to the speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.(2) An individual acting as a trustee of trust funds under these rules shall not, after depositing such funds with a financial institution, withdraw the trust funds for any purpose other than payment for funeral merchandise or service and refund of any balance remaining as provided by law. However, such individual trustee may, upon proper written authority, transfer trust funds to another financial institution or successor trustee.(3) Subject to contractual agreement between the parties, the trustee may receive a reasonable fee for services rendered as a trustee from the interest or earnings on the funds.Tenn. Comp. R. & Regs. 0780-05-10-.10
Original rule filed October 22, 2002; effective January 5, 2003.Authority: T.C.A. §§ 62-5-401, 62-5-402, and 62-5-405(a) and (b).