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Can you summarize TNCO 45-2-1007?
Fiduciary Powers > Deposit of securities in central depository.
Short Summary
This section of the Tennessee Code authorizes banks or trust companies acting as fiduciaries, cofiduciaries, agents for fiduciaries, or custodians to deposit or arrange for the deposit of securities in a clearing corporation. When the securities are deposited, certificates representing securities of the same class and issuer can be merged and held in bulk in the name of the clearing corporation’s nominee, regardless of ownership. The records of the bank or trust company must always indicate the party for whose account the securities are deposited. Title to the securities can be transferred through bookkeeping entries without physical delivery of certificates. Banks or trust companies depositing securities under this section are subject to rules and regulations issued by the commissioner or comptroller of the currency. Upon request, a bank or trust company acting as agent for a fiduciary or custodian must provide a written certification of the securities deposited in the clearing corporation for the fiduciary’s account. This section applies to any bank or trust company holding securities as a fiduciary, cofiduciary, agent for a fiduciary, or custodian, regardless of the appointment date or ownership of clearing corporation stock.
Whom does it apply to?
Banks or trust companies holding securities as fiduciaries, cofiduciaries, agents for fiduciaries, or custodians
What does it govern?
Deposit or arrangement of securities in a clearing corporation by banks or trust companies acting as fiduciaries, cofiduciaries, agents for fiduciaries, or custodians
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Tennessee