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Can you summarize IC 28-2-6?
BANKS > Securities Held by Nominees
Short Summary
This legal provision in the Indiana Code allows banks, trust companies, corporate fiduciaries, and national banking associations incorporated under the laws of Indiana to register and hold stocks, bonds, or other securities in the name of a nominee or nominees when acting in a fiduciary capacity. The provision requires consent from the co-fiduciary if acting as a co-fiduciary. The fiduciary must maintain clear records of the ownership of the securities and retain possession and control over the investments. If any loss occurs to the trust or estate due to the actions or omissions of the nominee or nominees, the bank, trust company, corporate fiduciary, or national banking association will be held liable as if the securities were held in their own name as fiduciary. The provisions of this chapter apply to banks, trust companies, corporate fiduciaries, and national banking associations acting on or after August 20, 1947, under wills, trusts, agreements, court orders, and other instruments existing or made on or after August 20, 1947.
Whom does it apply to?
Banks, trust companies, corporate fiduciaries, and national banking associations incorporated under the laws of Indiana
What does it govern?
Registration and holding of stocks, bonds, or other securities in the name of a nominee or nominees by banks, trust companies, corporate fiduciaries, and national banking associations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank, trust company, corporate fiduciary, or national banking association will be held liable to the same extent as if the securities were held in their own name as fiduciary in case of any loss to the trust or estate resulting from the acts or omissions of the nominee or nominees.
Jurisdiction
Indiana