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Can you summarize TNCO 45-2-1006?
Fiduciary Powers > Deposit of securities in federal reserve bank when acting as fiduciary authorized.
Short Summary
This legal provision authorizes banks or trust companies, when acting as fiduciaries or holding securities as 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 on which the United States or any of its departments, agencies, or instrumentalities has agreed to pay, guaranteed to pay, or guaranteed payment. The securities are to be credited to one or more 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 the rules and regulations issued by the commissioner (in the case of state chartered institutions) or the comptroller of the currency (in the case of national banking associations) regarding the making and maintenance of the deposits. The bank or trust company’s records must always show the ownership of the securities held in the account. Ownership and other interests in the securities credited to the account can be transferred through entries on the books of the federal reserve bank without physical delivery of any securities. Additionally, the bank or trust company must provide written certification of the deposited securities to the fiduciary upon demand. This provision applies to all fiduciaries and custodians for fiduciaries, regardless of the date of their appointment.
Whom does it apply to?
Banks or trust companies acting as fiduciaries or holding securities as custodians for fiduciaries
What does it govern?
Deposit of securities in federal reserve bank when acting as fiduciary authorized
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Tennessee