(a) A bank or trust company may invest in the shares of any single fund without express limit, subject to the limitations contained in subdivision(b) of this section.

(b) Banks or trust companies which invest in funds which contain assets subject to investment limits must review the fund portfolios on a periodic basis in order to ascertain whether the combined investment of the bank or trust company in the obligations of a single issuer (taking into account the bank or trust company's proportionate holding of fund shares together with any other investment) would comply with the limitations contained in sections 97(4-b), 103 and 106 of the Banking Law, if said sections were to be applied to such investments, and must reduce excessive holdings within a reasonable period of time to conform to such limitations.

(c) It is also expected that a bank or trust company investing in funds shall periodically monitor the portfolios of such funds to determine the appropriateness of the funds' investments for the portfolio of the bank or trust company.