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Can you summarize WVCO Chapter 31A, Article 6?
BANKS AND BANKING. > NOMINEE REGISTRATION OF FIDUCIARY SECURITIES.
Short Summary
This legal document, found in the West Virginia Code under the section ‘BANKS AND BANKING’, governs the nominee registration of fiduciary securities. It applies to banks, nonbanking subsidiaries of a bank holding company, nonbanking subsidiaries of a banking institution, or entities jointly owned by federally insured depository institutions authorized to exercise trust powers. The document allows these entities to hold securities in a fiduciary capacity and register them in the name of a nominee or nominees of the trust institution, or in its own name, without disclosing the fiduciary relationship. It also requires trust institutions to maintain records of the actual beneficial ownership of the property held, retain possession and control of securities separately, secure necessary endorsements or assignments for retransfer of securities, enter into contracts or agreements with nominees for protection of fiduciary accounts, and clearly indicate the form of registration in reports and accounts. The document imposes civil liability on trust institutions for any loss or damage to their fiduciary account or beneficiaries caused by the acts of their nominees, agents, employees, or other persons acting on their behalf. It also establishes a misdemeanor offense and a fine for trust institutions or their officers, employees, nominees, or agents placing property in nominee registration in violation of the provisions. The document further clarifies that transfer agents, registrars, corporations, officers, or agents complying with the directions of a trust institution are not liable for any loss caused by the acts of the nominee. Lastly, it prohibits trust institutions from using nominee registration to evade, avoid, or relieve themselves or any other person, firm, corporation, or property from taxation.
Whom does it apply to?
Banks, nonbanking subsidiaries of a bank holding company, nonbanking subsidiaries of a banking institution, or entities jointly owned by federally insured depository institutions authorized to exercise trust powers
What does it govern?
Nominee registration of fiduciary securities
What are exemptions?
No exemptions or specific penalties are mentioned.
What are the Penalties?
Any trust institution or its officers, employees, nominees or agents placing property in nominee registration in violation of any of the provisions of this article is guilty of a misdemeanor and, in addition to civil liability for restitution, shall be punished by a fine of not less than $50 nor more than $1,000.
Jurisdiction
West Virginia