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§ 403. Actions required, permitted or prohibited in fiduciary capacity

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: December 24, 2012

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 4. Fiduciary and Other Representative Powers (Refs & Annos)
Effective: December 24, 2012
7 P.S. § 403
§ 403. Actions required, permitted or prohibited in fiduciary capacity
The following rules shall be applicable to an institution acting in any capacity provided for under section 402.1
(a) Segregation of assets and records--The institution shall segregate from assets of the institution all property held as fiduciary (other than items in the course of collection) and shall keep separate records of all such property for each account for which such property is held.
(b) Names in which property held--The institution shall hold all such property in a form which complies with applicable law.
(c) Deposits of funds and security--The institution may deposit funds of an account awaiting investment or distribution in:
(i) a depository which is authorized by law to receive deposits and is subject to supervision by public authorities, or
(ii) if the institution is a bank and trust company or a savings bank, in its commercial, savings or other department where the funds may be used in the conduct of its business and, for an account for which the institution is acting as a fiduciary under section 402(a)(i), to the extent so deposited in an amount in excess of insurance provided by the Federal Deposit Insurance Corporation, shall be secured by a pledge of obligations or securities that are permissible as an investment of the institution.
(d) Capital in lieu of bond or security--The institution shall not be required to execute any bond or provide any security required by law of fiduciaries.
(e) Power to give bonds and security--The institution may give its own bond and pledge its assets as security for the faithful performance by it of its duties as fiduciary or as surety for such faithful performance by any co-fiduciary, in any case in which such bond may be required despite subsection (d) of this section.
(f) Oaths and affidavits--The institution may provide any oath or affirmation or any affidavit required of the institution as fiduciary through an officer thereof acting on behalf of the institution.
(g) Repealed by 2000, Nov. 22, P.L. 660, No. 89, § 8, imd. effective.
(h) Transactions between institution and fiduciary accounts--The institution shall not, as fiduciary, directly or indirectly sell any asset to the institution for its own account, or purchase from the institution any asset or any security issued by the institution except:
(i) obligations of the United States or for which the full faith and credit of the United States is pledged or obligations of the Commonwealth or any political subdivision of the Commonwealth,
(ii) assets earmarked for future investment as fiduciary at the time of acquisition by the institution and purchased with funds or exchanged for property held in a fiduciary account within two years of the date of such acquisition, subject to the requirement that there be a monthly report to the directors, which shall be noted in the minutes and kept on file by the institution, of property earmarked for future trust investment and of all transactions with respect to such property,
(iii) an undivided interest in a security or in an obligation secured by a lien on real estate, to the extent permitted by section 405,2 or
(iv) any asset sold to the institution for its own account or purchased in a fiduciary capacity from the institution with the prior approval of the department.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 403. Amended 1981, April 16, P.L. 9, No. 4, § 1, imd. effective. Affected 2000, Nov. 22, P.L. 660, No. 89, § 8, imd. effective. Amended 2012, Oct. 24, P.L. 1336, No. 170, § 21, effective in 60 days [Dec. 24, 2012].

Footnotes

7 P.S. § 402.
7 P.S. § 405.
7 P.S. § 403, PA ST 7 P.S. § 403
Current through 2022 Regular Session Act 40. Some statute sections may be more current, see credits for details.
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