Common Trust Fund Law and Legal Definition
Common trust fund is a collective investment fund managed by a bank trust department. It is similar to an open-end investment company or Mutual Fund but participation is restricted to those with trust accounts.
The following is an example of state statute (Alabama) defining the term Common trust fund :
According to Code of Ala. § 5-12A-1 a common trust fund is a fund established, maintained and administered pursuant to the requirements of this chapter by a trust institution exclusively for the collective investment and reinvestment of moneys contributed thereto by such trust institution in its capacity as a fiduciary or cofiduciary or by an affiliated trust institution in its capacity as a fiduciary or cofiduciary.
