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Can you summarize 6 OKST 1023?
Regulation of Trust Companies > Deposit of Securities in Clearing Corporation or Federal Reserve Bank
Short Summary
This legal provision authorizes banks, trust companies, and national banking associations to deposit or arrange for the deposit of securities in a clearing corporation or the Federal Reserve Bank. It applies to entities holding securities in fiduciary capacity, as custodians, managing agents, or custodians for a fiduciary. When securities are deposited, certificates of the same class and issuer can be merged and held in bulk under the name of the clearing corporation’s nominee, regardless of ownership. Small denomination certificates can also be merged into larger ones. The records of the fiduciary and the bank/trust company acting as custodian must always indicate the party for whose account the securities have been deposited. Ownership and other interests in the securities can be transferred through bookkeeping entries without physical delivery of certificates. The entities depositing securities are subject to rules and regulations issued by the Commissioner (for state-chartered institutions) or the Comptroller of the Currency (for national banking associations). The fiduciary must provide written certification of the deposited securities upon demand by the fiduciary or any party to a judicial proceeding. This provision applies to existing and future fiduciaries, custodians, managing agents, or custodians for a fiduciary, regardless of the date of appointment or ownership of clearing corporation stock.
Whom does it apply to?
Banks, trust companies, national banking associations holding securities in fiduciary capacity, custodians, managing agents, custodians for a fiduciary
What does it govern?
Deposit or arrangement of securities in a clearing corporation or Federal Reserve Bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Oklahoma