(a) The operation of the mutual trust investment company for other than true fiduciary purposes is hereby prohibited. The mutual trust investment company shall not permit any funds of any trust to be invested if it has reason to believe that such trust was not created or is not being used for true fiduciary purposes.

(b) Shares of stock of a mutual trust investment company shall not be sold, transferable to or owned by any person other than a trust company or a bank having trust powers organized under the laws of the State of New York, or a national bank having trust powers and having its principal office in the State of New York, acting in a fiduciary capacity, or nominees of such corporate fiduciaries or of individual cofiduciaries and serving with such trust companies or banks, except that shares may be owned, to the extent required by law, by the incorporators of such mutual investment company.