Which provision under the "Investment Authority/Permitted Investments" section is likely to be eliminated from a trust indenture?

The provision regarding joint authority between the trustee and obligor concerning investments is likely to be eliminated from a trust indenture due to its potential for creating conflicts of interest. When both the trustee and the obligor have joint authority, it can lead to situations where decisions on investments are not made in the best interest of the trust beneficiaries. Such joint authority can create ambiguity in accountability and fiduciary responsibility, which are crucial in trust management.

In contrast, explicit investment types, like commercial paper with a high rating, U.S. Treasury obligations, and additional investments authorized by state fiduciary law, serve to clarify and restrict the types of acceptable investments. These provisions aim to protect the beneficiaries' interests by ensuring a level of security and compliance with established fiduciary standards. Therefore, the joint authority provision is less favored and is more susceptible to being eliminated to maintain clearer governance and reduce potential risks associated with collaborative decision-making.