A bank fiduciary may rely on the beneficiary approval to engage in self-dealing transactions provided what condition is met regarding documentation?

The rationale behind the correct answer lies in the essential requirements governing fiduciary responsibility and self-dealing transactions. When a bank fiduciary considers engaging in self-dealing, it is crucial to protect the interests of the beneficiaries and ensure transparency. Therefore, the requirement that all vested beneficiaries must approve the transaction adds a layer of accountability, ensuring that their rights and interests are prioritized.

Moreover, the documentation of the facts in writing serves as a formal record of the beneficiaries’ consent, reinforcing the fiduciary’s obligation to act in good faith and within the confines of legal and ethical standards. This written documentation provides a safeguard against any disputes that may arise in the future, as it captures the details of the approval and the circumstances surrounding the transaction.

In summary, obtaining written approval from all vested beneficiaries, along with properly documenting the facts of the transaction, is vital in upholding the fiduciary's responsibility and maintaining the trust of the beneficiaries.