PUBLIC LAWS-CHS. 766, 767-OCT. 27, 1949 sums as may be necessary to carry out the other purposes of this title. Citation of title. SEC. 205. This title may be cited as the "Air Engineering Develop- ment Center Act of 1949". Approved October 27, 1949. [CHAPTER 767] AN ACT October 27,1949 [s. 1580] Concerning common-trust funds and to make uniform the law with reference [Public Law 416] thereto. Uniform Common- Trust Fund Act. 38 Stat. 262. 12 U. S. C., Supp. II, §248 note. 61 Stat. 328. D. C. Code, Supp. VII, §§47-1551 to 47- 1595; 40-201 to 40-204 . Ante, p. 129 e seq. 61 Stat. 346 . D. C . Code, Supp. VII. § 47-1577 to 47- 15771. Ante, p. 132. Be it enacted by the Senate and House of Representatives of the UnitedStates of America in Congress assembled, SECTION 1. ESTABLISHMENT OF COMMON-TRUST FUNDs.- Any bank or trust company qualified to act as fiduciary in the District of Colum- bia may, subject to such rules and regulations as may be promulgated from time to time by the Board of Governors of the Federal Reserve System under the provisions of section 11 (k) of the Federal Reserve Act, as amended (12 U. S . C . 248 (k)), pertaining to the collective investment of trust funds by national banks, establish common-trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others as cofiduciaries; and may, as such fiduciary or cofiduciary, invest funds which it lawfully holds for investment in interests in such common-trust funds, if such investment is not pro- hibited by the instrument, judgment, decree, or order creating such fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the written consent of its cofiduciaries to such investment. SEC. 2 . TAXABILITY OF COMMON-TRuST FUNDS. - (a) A common trust fund, as herein defined, shall not be subject to any tax imposed by the District of Columbia Income and Franchise Tax Act of 1947, as amended, and for the purpose of said Act shall not be deemed to be a corporation. (b) The net income of a common trust fund shall be computed in the same manner and on the same basis as in the case of an indi- vidual. Each participant in a common trust fund shall include, in computing its net income its proportionate share of the net income of such fund, whether or not distributed to it, and the amount so included in the net income of a participant shall be taxable to such participant, or its beneficiaries, in the manner and to the extent provided in title IX of the District of Columbia Income and Franchise Tax Act of 1947, as amended, as if any amount not distributed to the participant during its taxable year actually had been so distributed. (c) No gain or loss shall be realized by a common trust fund upon the admission or withdrawal of a participant, or upon the admission or withdrawal of any interest of a participant. The withdrawal of any participating interest by a participant shall be treated as a sale or exchange of such interest by such participant. (d) Every bank or trust company maintaining a common trust fund shall make a return under oath for the taxable year of such fund. (e) If the taxable year of a common trust fund is different from that of a participant therein, the proportionate share of the net income of such fund to be included in computing the net income of such participant for its taxable year shall be based upon the net income of such fund for its taxable year ending within the taxable year of such participant. SEC. 3 . Comrr AccotusTiNGc. -Unless ordered by a court of com- petent jurisdiction the bank or trust company operating such common- trust funds is not required to render a court accounting with regard [63 STAT.
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