1. (a) Investments shall be valued by reference to appropriate valuations applied by a generally accepted pricing service, or by the methods set forth in this section. All estimates, quotation sheets and valuations used for valuation shall be retained in the records of the common trust fund.

   1. (1) In the case of an obligation of the United States, or of an obligation for which the faith of the United States is pledged for the payment of interest and principal, the trust investment committee may use for the valuation of such investment the mean of the most recent dealer bid and asked prices appearing within the five business days next preceding the valuation date in newspapers of general circulation published in the City of New York, in standard financial periodicals or in current dealer communications. Obligations of the United States which may be redeemable at less than par prior to maturity, or which are not salable without exchange, shall be valued at par.
   2. (2) In the case of a security listed on a national securities exchange registered under section 6 of the Federal Securities Exchange Act of 1934 or on the NASDAQ National Market, the trust investment committee shall use for the valuation thereof the last reported sales price, unless there have been no reported sales within the five business days preceding the valuation date in which event the most recent bid price shall be used. For the purposes of this paragraph, reported sales prices and bid prices shall be those appearing in newspapers of general circulation published in the City of New York, in standard financial periodicals, or on the records of a registered national exchange or the National Association of Securities Dealers. If the trust investment committee believes that the last reported sales price or bid price does not fairly represent the value of the security, then the committee may, after expressing that view in writing for its records along with the reasons for it, use as an alternative, the valuation method in paragraph (3) of this subdivision.
   3. (3) If neither recorded sales nor bid and asked prices are available, and in the case of all investments other than those mentioned above, except investments in mortgages, the trust investment committee shall obtain written estimates of the value of any such investment as of the valuation date from not less than two bankers, brokers, dealers or other persons qualified in the opinion of the trust investment committee to give an opinion as to the value of the investment in question. The average of such estimates shall be used.

   (b)

2. (c) For the purposes of this section, a business day shall mean a day when the New York Stock Exchange or the American Stock Exchange is open for business.
3. (d) In the case of investment in any mortgage at least 50 percent of which is guaranteed pursuant to the provisions of the Act of Congress entitled the “Servicemen's Readjustment Act of 1944,” as from time to time amended, and in investments in mortgages insured by the Federal Housing Commissioner, the trust investment committee shall obtain from not less than two bankers, brokers, or other persons qualified in the opinion of the trust investment committee to give an opinion as to the value of the investment in question a written estimate of the value of such investment as of the valuation date. The average of such estimates shall be used and each such estimate shall be retained in the records of the common trust fund.
4. (e) In the case of investments in other mortgages, the trust investment committee shall secure, prior to any valuation date, from not less than two persons qualified in the opinion of the trust investment committee to give an opinion as to the value of the mortgage in question a written estimate of the value of such mortgage. At least one of the persons making such valuation shall not have participated in the making of the last preceding valuation. The average of such estimates shall be used and each such estimate shall be retained in the records of the common trust fund. Notwithstanding the foregoing, in the event that the trust company shall have in its files such a written estimate of value made within one year of the valuation date, such estimate may be used. The real estate securing each such mortgage investment shall be appraised at least once every three years by two persons, one of whom shall not have participated in the last preceding appraisal of such real estate. Such persons shall be appointed by the trust investment committee and shall, in the opinion of such committee, be familiar with real estate values in the vicinity in which such real estate is situated and qualified to make such appraisals. The persons so appointed shall actually inspect such real estate and shall so certify in a written certificate of appraisal, which shall be filed and preserved in the records of the common trust fund. In preparing a written estimate of the value of any mortgage, due consideration shall be given, by the persons making such valuation, to the last written certificate of appraisal of the property covered by such mortgage.
5. (f) In the case of a stock where a dividend has been declared but has not been paid and the amount of such dividend has been considered as income under the provisions of the plan of operation of the common trust fund, the amount of such dividend shall be deducted from the price of the stock in determining its value unless such price shall be an ex-dividend price.
6. (g) An investment purchased and awaiting payment against delivery shall be included for valuation purposes as a security held, and the cash account shall be adjusted to reflect the purchase price, including brokers' commissions and other expenses incurred in the purchase thereof but not disbursed as of the valuation date.
7. (h) An investment sold but not delivered pending receipt of proceeds shall be valued at the net sales price.
8. (i) For the purpose of valuation of an investment, except an investment sold but not delivered, it shall not be necessary to deduct from the value ascertained as provided above brokers' commissioners or other expenses which would be incurred upon a sale thereof.

The following method shall be used in the valuation of investments: