(1) No banking institution whose aggregate surplus and undivided profits do not equal or exceed 20 percentum of the share capital of the institution shall be designated as a depository for court and trust funds or for moneys paid into court.

(2) Depositories to pay interest. Depositories shall pay interest on court and trust funds and money paid into courts of record at a rate satisfactory to the State Comptroller and in no event less than the highest rate being paid by the depository on other accounts having similar maturities. Such interest shall be computed from the date of deposit to the date of withdrawal, except that no interest shall be payable on monies withdrawn within 30 days from the date of deposit. Interest is to be credited not less often than quarterly.

(1) The undertaking is to be executed by the proper officer of the depository under its seal. The filing of the undertaking with the State Comptroller constitutes a permanent undertaking on which the security may be changed or substituted from time to time as the condition of the deposit may warrant. No such change or substitution is to be made without the consent of the State Comptroller.

(2) The assignment of bonds made to secure deposits is to be executed in duplicate by proper officers of the depositary in addition to the undertaking and must refer to date and amount of undertaking and must set forth a description of bonds deposited and assigned.

(3) Proof of the execution of an instrument executed by a corporation must be made by acknowledgment of an officer authorized to execute the same by the board of directors of the corporation. Such acknowledgment must be under oath, stating that the seal affixed or impressed is the seal of the corporation and the signatures of the officers are the official signatures of such officers, and that both the seal and the signatures were attached by order of the board of directors.

(4) Savings banks are not required to execute an undertaking or pledge collateral to secure deposits of court and trust funds.