common trust fund


common trust fund
One composed of funds contributed by estates, trusts and guardianships, maintained and operated by a bank or trust company for exclusive use of its own estates, trusts and guardianships, under permission of law of state in which it is located and according to rules and regulations promulgated by Federal Reserve System. Mechanicks Nat. Bank of Concord v. D'Amours, 100 N.H. 461, 129 A.2d 859, 862.
Type of trust fund in which funds of many persons are commingled for purposes of economy of administration and counselling and in which a bank or other financial institution is trustee; regulated almost entirely by statute. Several states have adopted the Uniform Common Trust Fund Act

Black's law dictionary. . 1990.