1. (a) The transaction is fair and reasonable to the trust and its shareholders.
2. (b) The terms of such transaction are at least as favorable as the terms of any comparable transactions made on arms length basis and known to the trustees.
3. (c) The total consideration is not in excess of the appraised value of the property being acquired, if an acquisition is involved.

4. (d) Payments to the investment advisor, its affiliates and the trustees for services rendered in a capacity other than that as investment advisor or trustees may only be made upon a determination that:

   1. (1) The compensation is not in excess of their compensation paid for any comparable services; and
   2. (2) The compensation is not greater than the charges for comparable services available from others who are competent and not affiliated with any of the parties involved.

Trustees occupy a fiduciary relationship with respect to transactions entered into by the trust. Consequently, the declaration of trust shall provide that the trust shall not engage in transactions with any trustee, director, officer, or any person affiliated with such person, except to the extent that each such transaction has, after disclosure of such affiliation, been approved or ratified by the affirmative vote of a majority of the trustees not affiliated with the person who is party to the transaction and:

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 3-20-78; effective thirtieth day thereafter (Register 78, No. 12).

2. Renumbering and amendment of Section 260.140.102 to Section 260.140.99, and new Section 260.140.102 filed 1-28-82; effective thirtieth day thereafter (Register 82, No. 5).