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Can you summarize MTCO 32-1-426?
Operation and Regulation > Deposit of securities in central depository
Short Summary
This legal document authorizes fiduciaries, banks, and trust companies to deposit or arrange for the deposit of securities in a clearing corporation. The securities can be merged and held in bulk under the name of the clearing corporation’s nominee, regardless of ownership. Certificates of small denomination can be merged into larger ones. The records of the fiduciary and the bank or trust company must always indicate the party for whose account the securities are deposited. Transfer of title to the securities can be done through bookkeeping entries without physical delivery of certificates. State-chartered institutions and national banking associations are subject to rules adopted by the state banking board and the comptroller of the currency, respectively. Upon demand, a bank or trust company acting as custodian for a fiduciary must provide a written certification of the securities deposited. Similarly, a fiduciary must provide a written certification of the securities deposited upon demand in a judicial proceeding. This document applies to fiduciaries and banks or trust companies acting as custodians, managing agents, or custodians for fiduciaries, regardless of the appointment date or ownership of capital stock in the clearing corporation.
Whom does it apply to?
Fiduciaries, banks, trust companies
What does it govern?
Deposit or arrangement of securities in a clearing corporation
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
Montana