It is enacted by the General Assembly as follows:

SECTION 1. Chapter 19-9 of the General Laws entitled "Trust Powers" is hereby amended by adding thereto the following section:

{ADD 19-3.1-2.1. Permitted investments. -- ADD} {ADD In the absence of any express provisions to the contrary, whenever any general statute, special act, regulation, trust indenture, will or other instrument governing the investment powers of trustees directs, requires, authorizes or permits investment in United States government obligations, a trustee may invest in and hold such obligations, either directly or in the form of interests in an investment company or investment trust registered under the Investment Company Act of 1940, (15 U.S.C. Section 80a-1 et seq.) as from time to time amended, the portfolio of which is limited to United States government obligations and to repurchase agreements fully collateralized by such obligations, and which is rated in the top rating category of any nationally recognized rating services. ADD}

SECTION 2. This act shall take effect upon passage.