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Can you summarize MTCO 32-1-427?
Operation and Regulation > Fiduciaries -- deposit of securities with a federal reserve bank
Short Summary
This legal provision authorizes banks and trust companies acting as fiduciaries or custodians for fiduciaries to deposit or arrange for the deposit of securities with the federal reserve bank in their district. The securities must be those for which the United States or any of its departments, agencies, or instrumentalities has agreed to pay or guaranteed payment of principal and interest. The securities are credited to accounts on the books of the federal reserve bank in the name of the bank or trust company, designated as fiduciary or safekeeping accounts. The bank or trust company must comply with rules set by the state banking board or the comptroller of the currency for state-chartered institutions or national banking associations, respectively. The ownership of the securities held in the account must be recorded in the bank or trust company’s records. Ownership and other interests in the securities can be transferred through entries on the books of the federal reserve bank without physical delivery of the securities. Upon demand, the bank or trust company must provide a written certification of the deposited securities to the fiduciary, and the fiduciary must provide a written certification to any party or their attorney upon demand. This provision applies to all fiduciaries and custodians for fiduciaries acting on or after July 1, 1977, regardless of the date of their appointment.
Whom does it apply to?
Bank or trust company acting as fiduciary or custodian for a fiduciary
What does it govern?
Deposit of securities with a federal reserve bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Montana