Section 2. The following powers shall be known as the ''Statutory Optional Fiduciary Powers'' and may be given to the fiduciary in a will or trust by specific reference thereto in said will or trust in addition to all common law and other statutory powers:
(1) Said fiduciary shall have the power without approval of any court:
(a) to retain any property in the form in which it is received and, while a trust is revocable by the settlor, to purchase or retain any property the purchase or retention of which is requested by the settlor;
(b) to accept additional property in any trust hereunder from any source and upon any special terms;
(c) with respect to any tangible personal property, to repair, store, insure or otherwise care for such property and to pay such shipping or other expense relating to such property as the fiduciary deems advisable;
(d) to abandon any property which the fiduciary determines to be worthless;
(e) to invest principal and income in such property as the fiduciary may determine, and, without limiting the generality of the foregoing, to invest in investment company shares or in shares or undivided portions of any common trust fund established by any fiduciary without notice to any beneficiary;
(f) to sell, exchange or otherwise dispose of the property at public or private sale on such terms as he may determine, no purchaser being bound to see to the application of any proceeds;
(g) to lease the property on such terms as he may determine although the term may extend beyond the time when it becomes distributable;
(h) to decide all questions between principal and income according to law;
(i) to keep registered securities in the name of a nominee;
(j) to pay, compromise or contest claims or controversies, including claims for estate or inheritance taxes, in such manner as he may determine;
(k) to participate in such manner as he may determine in any reorganization, merger or consolidation of any entity the securities of which constitute part of the property held, and to deposit such securities with voting trustees or committees of security holders even though under the terms of deposit such securities may remain deposited beyond the time when they become distributable, to vote upon any securities in person or by special, limited or general proxy, with or without power of substitution, and otherwise to exercise all the rights that may be exercised by any security holder in his individual capacity;
(l) to borrow such amounts as he may consider necessary to obtain cash for any purposes for which funds are required in administering the estate or trust, and in connection therewith, to mortgage or otherwise encumber any property on such conditions as he may determine although the term of the loan may extend beyond the time that would otherwise be needed for completing the administration of the estate or beyond the term of the trust;
(m) to allot in or towards satisfaction of any payment, distribution or division, in such manner as he may determine, any property held at then current fair market values determined by him;
(n) to hold trusts and shares undivided or at any time to hold the same or any of them set apart one from another;
(o) to lend, borrow, buy or sell on commercially reasonable terms to or from any fiduciary acting under another instrument made by the testator or settlor; and
(p) to combine all or part of the property for investment with property held by a fiduciary acting under another instrument upon substantially similar terms made by the testator or settlor or by his or her spouse, except that property qualifying for a marital, orphan or charitable deduction for federal tax purposes may not be so combined.
(2) Such powers shall be subject to such exceptions, limitations and conditions as to property otherwise qualifying for marital, orphan or charitable deductions allowable under federal tax laws as are contained in all special provisions relating thereto in the instrument or as may be necessary to conform to the requirements of federal tax laws at any time applicable for qualification of such property for such deduction, including consent of the surviving spouse or child, if any, of the testator or settlor, if so required. Such powers, except as expressly limited in the instrument, may be exercised by the person or persons for the time being serving as such fiduciary, whether or not named therein. Powers conferred on the fiduciary shall be exercised only in accordance with a reasonable discretion. No power conferred upon the fiduciary in this section shall be exercised in favor of any person then serving as fiduciary nor in favor of his estate or his creditors, or the creditors of his estate.