1580. A trust company has the following powers:
(a) It may act, or may be appointed by any court to act, in like
manner as an individual, as executor, administrator, guardian or
conservator of estates, assignee, receiver, depositary, trustee,
custodian, or in any other fiduciary or representative capacity for
any purpose permitted by law, may act as transfer agent or registrar
of corporate stocks and bonds, may buy and sell securities for the
account of customers, and may accept and execute any trust business
permitted by any law of this or any other state or of the United
States to be taken, accepted, or executed by an individual; and
(b) A trust company, upon becoming a member of the Federal Reserve
System, shall continue to have such powers as may then or thereafter
be conferred upon it by the laws of this State, subject to such
federal rules, regulations, and laws as may govern state banks
exercising trust powers or trust companies which become members of
the Federal Reserve System.
1581. For the purposes of this chapter, all trusts and other
business permitted to be accepted or executed by a trust company are
hereby classified and defined as either court trusts or private
trusts.
A "court trust" is one in which a trust company acts under
appointment, order, or decree of any court, as executor,
administrator, guardian, conservator, assignee, receiver, depositary,
or trustee, or in which it receives on deposit money or property
from a public administrator, under any provision of this code, or
from any executor, administrator, guardian, assignee, receiver,
depositary, or trustee, under any order or decree of any court.
A "private trust" is every other trust, agency, fiduciary
relationship, or representative capacity.
1582. A trust company, its officers and employees, shall not
disclose any information to any person concerning the existence,
condition, management, and administration of any private trust
confided to it, except:
(a) Where such disclosure is specifically authorized by the terms
of the trust.
(b) Where such disclosure is determined by an officer of the trust
company to be necessary in the administration of such trust.
(c) Where such disclosure is required by a court of competent
jurisdiction or by a subpoena issued by an attorney pursuant to
Section 1985 of the Code of Civil Procedure.
(d) Where such disclosure is made to, or upon the instructions of,
any party executing the trust instrument.
(e) Where such disclosure refers to an irrevocable trust, to, or
upon the instructions of, any beneficiary thereunder whether or not
presently entitled to receive benefits therefrom.
(f) Where such disclosure is made to the commissioner in the
course of an examination.
1583. The commissioner shall examine the court trust business of a
trust company at least once every 24 months and shall examine the
private trust business at such times and to such extent as he or she
may deem necessary or advisable.
1584. In making the reports to the commissioner required by this
division, every trust company shall report, in addition to the other
facts called for, separately, the amount of real property and the
amount of personal property held by such trust company in both its
court trusts and in its private trusts.
1586. Any court having jurisdiction of any executor, administrator,
guardian, conservator, assignee, receiver, depositary, or trustee,
upon the application of any such officer or trustee or upon the
application of any person having an interest in the estate or
property administered by such officer or trustee, after such notice
to the other parties in interest as the court may direct, or without
notice if all parties in interest consent thereto, and after a
hearing upon such application, may authorize or direct such officer
or trustee, whether such person has duly qualified or not, to deposit
any moneys then in his hands or which may come into his hands
thereafter, and such portion or all of the personal assets of such
estate as the court shall deem proper for safekeeping, with any such
trust company. Upon such deposit being made the court shall by an
order of record reduce the bond to be given, or theretofore given, by
such officer or trustee so as to cover only the estate remaining in
the hands of such officer or trustee. The money and property so
deposited shall thereupon and thereafter be held by such trust
company under the order and direction of the court.
Such trust company shall not be required to give any bond or
security, except as provided in this division, in case of any deposit
of moneys or other personal assets with it under this section. Its
responsibility for the safekeeping of personal assets so deposited
with it shall be that of a bailee for hire.
1586.5. Securities held by a trust company by direction of any
court order issued pursuant to Section 1586 may be deposited,
pursuant to the provisions of Section 775, in a securities
depository, as defined in Section 30004, which is licensed under
Section 30200 or exempted from licensing thereunder by Section 30005
or 30006.
1587. Whenever an executor, administrator, guardian or conservator
of estates, assignee, receiver, depositary, or trustee is required to
qualify by taking and subscribing an oath or to make an affidavit,
any trust company acting in any such capacity may satisfy such
requirement by the oath or affidavit of its president, vice
president, secretary, assistant secretary, manager, trust officer, or
assistant trust officer. Any such trust company shall be liable for
its failure to perform any of the duties required by law to be
performed by an individual acting in like capacity and shall be
subject to the same penalties for such failure as would be applicable
to an individual.
1588. Whenever any corporation desires to withdraw from and
discontinue doing a trust business, it shall furnish to the
commissioner satisfactory evidence of its release and discharge from
all the obligations and trusts which it has assumed or which have
been imposed on it by law. Thereupon the commissioner shall revoke
his or her certificate of authority to do a trust business, and the
State Treasurer shall return to it all of the securities deposited by
it. Thereafter such corporation shall not be permitted to use and
shall not use the word "trust" in its corporate name, or in
connection with its business.
1589. The validity or legality of any act or proceeding done or
taken by any trust company, relating to or in connection with the
administration of its court and private trusts, shall not be affected
or impaired by the neglect or failure of such trust company, or of
any officer or employee thereof, to comply with any of the provisions
of this division. All such acts and proceedings done or taken prior
to the revocation of its certificate of authority to do a trust
business by the commissioner, under the provisions of this division,
or the revocation by any court or judge thereof of the appointment,
order, or decree theretofore entered in such trust matter, shall be
as valid and effective for all purposes as if any such neglect or
failure had not occurred.
1590. Nothing in this chapter shall make it unlawful for any person
or corporation to engage in the business of receiving and holding
money in escrow or of acting as trustee under deeds of trust given
solely for the purpose of securing obligations for the repayment of
money other than corporate bonds.
1591. A bank or trust company shall not mingle trust funds received
by it with other assets of the corporation or association and such
funds shall not be used in the conduct of its business except to the
extent that such funds are deposited with the same corporation or
association in accordance with the provisions of this division. Any
officer of any bank or association who knowingly violates or consents
to the violation of this section is guilty of a felony.
1592. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit of the securities in
a securities depository, as defined in Section 30004, which is
licensed under Section 30200 or exempted from licensing thereunder by
Section 30005 or 30006. When securities are so deposited, they may
be held in the custody of the securities depository in which they are
deposited or in the custody of any other securities depository so
licensed or exempted and in which the securities depository in which
the securities were deposited maintains an account, or in the custody
of any bank or trust company with authority to accept custody of the
securities, that accepts custody of the securities on behalf of a
securities depository. The securities may be held in the name of the
nominee of the securities depository in which they are deposited, or
in the name of the nominee of any other securities depository with
which the securities depository in which they are deposited maintains
an account. The custodian of securities so deposited may merge
certificates representing securities of the same class of the same
issuer and may hold those certificates in bulk with any other
securities deposited in any securities depository by any person
regardless of the ownership of the securities, and certificates of
small denomination may be merged into one or more certificates of
larger denomination. Any bank or trust company that deposits or
arranges for the deposit of the securities in a securities depository
shall maintain records that at all times show the ownership of the
deposited securities. A bank or trust company depositing securities
pursuant to this section shall be subject to such rules and
regulations as in the case of state chartered institutions, the
commissioner and, in the case of national banking associations, the
Comptroller of the Currency may from time to time issue. This section
shall apply to securities now held or hereafter held by a bank or
trust company in the above designated capacities. A bank or trust
company may, but shall not be required to, own capital stock of a
securities depository in which it deposits securities pursuant to
this section.
1593. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit with a federal
reserve bank of any such securities the principal and interest of
which the United States or any department, agency, or instrumentality
thereof has agreed to pay, or has guaranteed payment, 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, to be designated fiduciary or
safekeeping accounts, to which accounts other similar securities may
be credited. Any bank or trust company that deposits or arranges for
the deposit of securities pursuant to this section shall maintain
records that at all times show the ownership of the securities
deposited. A bank or trust company depositing securities pursuant to
this section shall be subject to such rules and regulations as in the
case of state-chartered institutions, the commissioner and, in the
case of national banking associations, the Comptroller of the
Currency, may from time to time issue. Ownership of, and other
interests in, the securities credited to such account may be
transferred by entries on the books of the federal reserve bank
without physical delivery of any securities. A bank or trust company
acting as custodian for a fiduciary shall, on demand by the
fiduciary, certify in writing to the fiduciary the securities
deposited by the bank or trust company pursuant to this section for
the account of the fiduciary. A fiduciary shall, on demand by any
party to its accounting, certify in writing to that party the
securities deposited for its account as a fiduciary pursuant to this
section. This section shall apply to all fiduciaries and custodians
for fiduciaries, acting on the effective date of this section or who
thereafter may act regardless of the state of the instrument or court
order by which they are appointed.
1580. A trust company has the following powers:
(a) It may act, or may be appointed by any court to act, in like
manner as an individual, as executor, administrator, guardian or
conservator of estates, assignee, receiver, depositary, trustee,
custodian, or in any other fiduciary or representative capacity for
any purpose permitted by law, may act as transfer agent or registrar
of corporate stocks and bonds, may buy and sell securities for the
account of customers, and may accept and execute any trust business
permitted by any law of this or any other state or of the United
States to be taken, accepted, or executed by an individual; and
(b) A trust company, upon becoming a member of the Federal Reserve
System, shall continue to have such powers as may then or thereafter
be conferred upon it by the laws of this State, subject to such
federal rules, regulations, and laws as may govern state banks
exercising trust powers or trust companies which become members of
the Federal Reserve System.
1581. For the purposes of this chapter, all trusts and other
business permitted to be accepted or executed by a trust company are
hereby classified and defined as either court trusts or private
trusts.
A "court trust" is one in which a trust company acts under
appointment, order, or decree of any court, as executor,
administrator, guardian, conservator, assignee, receiver, depositary,
or trustee, or in which it receives on deposit money or property
from a public administrator, under any provision of this code, or
from any executor, administrator, guardian, assignee, receiver,
depositary, or trustee, under any order or decree of any court.
A "private trust" is every other trust, agency, fiduciary
relationship, or representative capacity.
1582. A trust company, its officers and employees, shall not
disclose any information to any person concerning the existence,
condition, management, and administration of any private trust
confided to it, except:
(a) Where such disclosure is specifically authorized by the terms
of the trust.
(b) Where such disclosure is determined by an officer of the trust
company to be necessary in the administration of such trust.
(c) Where such disclosure is required by a court of competent
jurisdiction or by a subpoena issued by an attorney pursuant to
Section 1985 of the Code of Civil Procedure.
(d) Where such disclosure is made to, or upon the instructions of,
any party executing the trust instrument.
(e) Where such disclosure refers to an irrevocable trust, to, or
upon the instructions of, any beneficiary thereunder whether or not
presently entitled to receive benefits therefrom.
(f) Where such disclosure is made to the commissioner in the
course of an examination.
1583. The commissioner shall examine the court trust business of a
trust company at least once every 24 months and shall examine the
private trust business at such times and to such extent as he or she
may deem necessary or advisable.
1584. In making the reports to the commissioner required by this
division, every trust company shall report, in addition to the other
facts called for, separately, the amount of real property and the
amount of personal property held by such trust company in both its
court trusts and in its private trusts.
1586. Any court having jurisdiction of any executor, administrator,
guardian, conservator, assignee, receiver, depositary, or trustee,
upon the application of any such officer or trustee or upon the
application of any person having an interest in the estate or
property administered by such officer or trustee, after such notice
to the other parties in interest as the court may direct, or without
notice if all parties in interest consent thereto, and after a
hearing upon such application, may authorize or direct such officer
or trustee, whether such person has duly qualified or not, to deposit
any moneys then in his hands or which may come into his hands
thereafter, and such portion or all of the personal assets of such
estate as the court shall deem proper for safekeeping, with any such
trust company. Upon such deposit being made the court shall by an
order of record reduce the bond to be given, or theretofore given, by
such officer or trustee so as to cover only the estate remaining in
the hands of such officer or trustee. The money and property so
deposited shall thereupon and thereafter be held by such trust
company under the order and direction of the court.
Such trust company shall not be required to give any bond or
security, except as provided in this division, in case of any deposit
of moneys or other personal assets with it under this section. Its
responsibility for the safekeeping of personal assets so deposited
with it shall be that of a bailee for hire.
1586.5. Securities held by a trust company by direction of any
court order issued pursuant to Section 1586 may be deposited,
pursuant to the provisions of Section 775, in a securities
depository, as defined in Section 30004, which is licensed under
Section 30200 or exempted from licensing thereunder by Section 30005
or 30006.
1587. Whenever an executor, administrator, guardian or conservator
of estates, assignee, receiver, depositary, or trustee is required to
qualify by taking and subscribing an oath or to make an affidavit,
any trust company acting in any such capacity may satisfy such
requirement by the oath or affidavit of its president, vice
president, secretary, assistant secretary, manager, trust officer, or
assistant trust officer. Any such trust company shall be liable for
its failure to perform any of the duties required by law to be
performed by an individual acting in like capacity and shall be
subject to the same penalties for such failure as would be applicable
to an individual.
1588. Whenever any corporation desires to withdraw from and
discontinue doing a trust business, it shall furnish to the
commissioner satisfactory evidence of its release and discharge from
all the obligations and trusts which it has assumed or which have
been imposed on it by law. Thereupon the commissioner shall revoke
his or her certificate of authority to do a trust business, and the
State Treasurer shall return to it all of the securities deposited by
it. Thereafter such corporation shall not be permitted to use and
shall not use the word "trust" in its corporate name, or in
connection with its business.
1589. The validity or legality of any act or proceeding done or
taken by any trust company, relating to or in connection with the
administration of its court and private trusts, shall not be affected
or impaired by the neglect or failure of such trust company, or of
any officer or employee thereof, to comply with any of the provisions
of this division. All such acts and proceedings done or taken prior
to the revocation of its certificate of authority to do a trust
business by the commissioner, under the provisions of this division,
or the revocation by any court or judge thereof of the appointment,
order, or decree theretofore entered in such trust matter, shall be
as valid and effective for all purposes as if any such neglect or
failure had not occurred.
1590. Nothing in this chapter shall make it unlawful for any person
or corporation to engage in the business of receiving and holding
money in escrow or of acting as trustee under deeds of trust given
solely for the purpose of securing obligations for the repayment of
money other than corporate bonds.
1591. A bank or trust company shall not mingle trust funds received
by it with other assets of the corporation or association and such
funds shall not be used in the conduct of its business except to the
extent that such funds are deposited with the same corporation or
association in accordance with the provisions of this division. Any
officer of any bank or association who knowingly violates or consents
to the violation of this section is guilty of a felony.
1592. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit of the securities in
a securities depository, as defined in Section 30004, which is
licensed under Section 30200 or exempted from licensing thereunder by
Section 30005 or 30006. When securities are so deposited, they may
be held in the custody of the securities depository in which they are
deposited or in the custody of any other securities depository so
licensed or exempted and in which the securities depository in which
the securities were deposited maintains an account, or in the custody
of any bank or trust company with authority to accept custody of the
securities, that accepts custody of the securities on behalf of a
securities depository. The securities may be held in the name of the
nominee of the securities depository in which they are deposited, or
in the name of the nominee of any other securities depository with
which the securities depository in which they are deposited maintains
an account. The custodian of securities so deposited may merge
certificates representing securities of the same class of the same
issuer and may hold those certificates in bulk with any other
securities deposited in any securities depository by any person
regardless of the ownership of the securities, and certificates of
small denomination may be merged into one or more certificates of
larger denomination. Any bank or trust company that deposits or
arranges for the deposit of the securities in a securities depository
shall maintain records that at all times show the ownership of the
deposited securities. A bank or trust company depositing securities
pursuant to this section shall be subject to such rules and
regulations as in the case of state chartered institutions, the
commissioner and, in the case of national banking associations, the
Comptroller of the Currency may from time to time issue. This section
shall apply to securities now held or hereafter held by a bank or
trust company in the above designated capacities. A bank or trust
company may, but shall not be required to, own capital stock of a
securities depository in which it deposits securities pursuant to
this section.
1593. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit with a federal
reserve bank of any such securities the principal and interest of
which the United States or any department, agency, or instrumentality
thereof has agreed to pay, or has guaranteed payment, 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, to be designated fiduciary or
safekeeping accounts, to which accounts other similar securities may
be credited. Any bank or trust company that deposits or arranges for
the deposit of securities pursuant to this section shall maintain
records that at all times show the ownership of the securities
deposited. A bank or trust company depositing securities pursuant to
this section shall be subject to such rules and regulations as in the
case of state-chartered institutions, the commissioner and, in the
case of national banking associations, the Comptroller of the
Currency, may from time to time issue. Ownership of, and other
interests in, the securities credited to such account may be
transferred by entries on the books of the federal reserve bank
without physical delivery of any securities. A bank or trust company
acting as custodian for a fiduciary shall, on demand by the
fiduciary, certify in writing to the fiduciary the securities
deposited by the bank or trust company pursuant to this section for
the account of the fiduciary. A fiduciary shall, on demand by any
party to its accounting, certify in writing to that party the
securities deposited for its account as a fiduciary pursuant to this
section. This section shall apply to all fiduciaries and custodians
for fiduciaries, acting on the effective date of this section or who
thereafter may act regardless of the state of the instrument or court
order by which they are appointed.
1580. A trust company has the following powers:
(a) It may act, or may be appointed by any court to act, in like
manner as an individual, as executor, administrator, guardian or
conservator of estates, assignee, receiver, depositary, trustee,
custodian, or in any other fiduciary or representative capacity for
any purpose permitted by law, may act as transfer agent or registrar
of corporate stocks and bonds, may buy and sell securities for the
account of customers, and may accept and execute any trust business
permitted by any law of this or any other state or of the United
States to be taken, accepted, or executed by an individual; and
(b) A trust company, upon becoming a member of the Federal Reserve
System, shall continue to have such powers as may then or thereafter
be conferred upon it by the laws of this State, subject to such
federal rules, regulations, and laws as may govern state banks
exercising trust powers or trust companies which become members of
the Federal Reserve System.
1581. For the purposes of this chapter, all trusts and other
business permitted to be accepted or executed by a trust company are
hereby classified and defined as either court trusts or private
trusts.
A "court trust" is one in which a trust company acts under
appointment, order, or decree of any court, as executor,
administrator, guardian, conservator, assignee, receiver, depositary,
or trustee, or in which it receives on deposit money or property
from a public administrator, under any provision of this code, or
from any executor, administrator, guardian, assignee, receiver,
depositary, or trustee, under any order or decree of any court.
A "private trust" is every other trust, agency, fiduciary
relationship, or representative capacity.
1582. A trust company, its officers and employees, shall not
disclose any information to any person concerning the existence,
condition, management, and administration of any private trust
confided to it, except:
(a) Where such disclosure is specifically authorized by the terms
of the trust.
(b) Where such disclosure is determined by an officer of the trust
company to be necessary in the administration of such trust.
(c) Where such disclosure is required by a court of competent
jurisdiction or by a subpoena issued by an attorney pursuant to
Section 1985 of the Code of Civil Procedure.
(d) Where such disclosure is made to, or upon the instructions of,
any party executing the trust instrument.
(e) Where such disclosure refers to an irrevocable trust, to, or
upon the instructions of, any beneficiary thereunder whether or not
presently entitled to receive benefits therefrom.
(f) Where such disclosure is made to the commissioner in the
course of an examination.
1583. The commissioner shall examine the court trust business of a
trust company at least once every 24 months and shall examine the
private trust business at such times and to such extent as he or she
may deem necessary or advisable.
1584. In making the reports to the commissioner required by this
division, every trust company shall report, in addition to the other
facts called for, separately, the amount of real property and the
amount of personal property held by such trust company in both its
court trusts and in its private trusts.
1586. Any court having jurisdiction of any executor, administrator,
guardian, conservator, assignee, receiver, depositary, or trustee,
upon the application of any such officer or trustee or upon the
application of any person having an interest in the estate or
property administered by such officer or trustee, after such notice
to the other parties in interest as the court may direct, or without
notice if all parties in interest consent thereto, and after a
hearing upon such application, may authorize or direct such officer
or trustee, whether such person has duly qualified or not, to deposit
any moneys then in his hands or which may come into his hands
thereafter, and such portion or all of the personal assets of such
estate as the court shall deem proper for safekeeping, with any such
trust company. Upon such deposit being made the court shall by an
order of record reduce the bond to be given, or theretofore given, by
such officer or trustee so as to cover only the estate remaining in
the hands of such officer or trustee. The money and property so
deposited shall thereupon and thereafter be held by such trust
company under the order and direction of the court.
Such trust company shall not be required to give any bond or
security, except as provided in this division, in case of any deposit
of moneys or other personal assets with it under this section. Its
responsibility for the safekeeping of personal assets so deposited
with it shall be that of a bailee for hire.
1586.5. Securities held by a trust company by direction of any
court order issued pursuant to Section 1586 may be deposited,
pursuant to the provisions of Section 775, in a securities
depository, as defined in Section 30004, which is licensed under
Section 30200 or exempted from licensing thereunder by Section 30005
or 30006.
1587. Whenever an executor, administrator, guardian or conservator
of estates, assignee, receiver, depositary, or trustee is required to
qualify by taking and subscribing an oath or to make an affidavit,
any trust company acting in any such capacity may satisfy such
requirement by the oath or affidavit of its president, vice
president, secretary, assistant secretary, manager, trust officer, or
assistant trust officer. Any such trust company shall be liable for
its failure to perform any of the duties required by law to be
performed by an individual acting in like capacity and shall be
subject to the same penalties for such failure as would be applicable
to an individual.
1588. Whenever any corporation desires to withdraw from and
discontinue doing a trust business, it shall furnish to the
commissioner satisfactory evidence of its release and discharge from
all the obligations and trusts which it has assumed or which have
been imposed on it by law. Thereupon the commissioner shall revoke
his or her certificate of authority to do a trust business, and the
State Treasurer shall return to it all of the securities deposited by
it. Thereafter such corporation shall not be permitted to use and
shall not use the word "trust" in its corporate name, or in
connection with its business.
1589. The validity or legality of any act or proceeding done or
taken by any trust company, relating to or in connection with the
administration of its court and private trusts, shall not be affected
or impaired by the neglect or failure of such trust company, or of
any officer or employee thereof, to comply with any of the provisions
of this division. All such acts and proceedings done or taken prior
to the revocation of its certificate of authority to do a trust
business by the commissioner, under the provisions of this division,
or the revocation by any court or judge thereof of the appointment,
order, or decree theretofore entered in such trust matter, shall be
as valid and effective for all purposes as if any such neglect or
failure had not occurred.
1590. Nothing in this chapter shall make it unlawful for any person
or corporation to engage in the business of receiving and holding
money in escrow or of acting as trustee under deeds of trust given
solely for the purpose of securing obligations for the repayment of
money other than corporate bonds.
1591. A bank or trust company shall not mingle trust funds received
by it with other assets of the corporation or association and such
funds shall not be used in the conduct of its business except to the
extent that such funds are deposited with the same corporation or
association in accordance with the provisions of this division. Any
officer of any bank or association who knowingly violates or consents
to the violation of this section is guilty of a felony.
1592. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit of the securities in
a securities depository, as defined in Section 30004, which is
licensed under Section 30200 or exempted from licensing thereunder by
Section 30005 or 30006. When securities are so deposited, they may
be held in the custody of the securities depository in which they are
deposited or in the custody of any other securities depository so
licensed or exempted and in which the securities depository in which
the securities were deposited maintains an account, or in the custody
of any bank or trust company with authority to accept custody of the
securities, that accepts custody of the securities on behalf of a
securities depository. The securities may be held in the name of the
nominee of the securities depository in which they are deposited, or
in the name of the nominee of any other securities depository with
which the securities depository in which they are deposited maintains
an account. The custodian of securities so deposited may merge
certificates representing securities of the same class of the same
issuer and may hold those certificates in bulk with any other
securities deposited in any securities depository by any person
regardless of the ownership of the securities, and certificates of
small denomination may be merged into one or more certificates of
larger denomination. Any bank or trust company that deposits or
arranges for the deposit of the securities in a securities depository
shall maintain records that at all times show the ownership of the
deposited securities. A bank or trust company depositing securities
pursuant to this section shall be subject to such rules and
regulations as in the case of state chartered institutions, the
commissioner and, in the case of national banking associations, the
Comptroller of the Currency may from time to time issue. This section
shall apply to securities now held or hereafter held by a bank or
trust company in the above designated capacities. A bank or trust
company may, but shall not be required to, own capital stock of a
securities depository in which it deposits securities pursuant to
this section.
1593. Notwithstanding any other provision of law, any bank and any
trust company holding securities in a fiduciary capacity or while
engaged in a trust business, or while acting in any capacity under a
court or private trust, or while acting in that capacity with one or
more persons as cofiduciary or cofiduciaries, unless the instrument
creating the trust contains a provision to the contrary, is
authorized to deposit or arrange for the deposit with a federal
reserve bank of any such securities the principal and interest of
which the United States or any department, agency, or instrumentality
thereof has agreed to pay, or has guaranteed payment, 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, to be designated fiduciary or
safekeeping accounts, to which accounts other similar securities may
be credited. Any bank or trust company that deposits or arranges for
the deposit of securities pursuant to this section shall maintain
records that at all times show the ownership of the securities
deposited. A bank or trust company depositing securities pursuant to
this section shall be subject to such rules and regulations as in the
case of state-chartered institutions, the commissioner and, in the
case of national banking associations, the Comptroller of the
Currency, may from time to time issue. Ownership of, and other
interests in, the securities credited to such account may be
transferred by entries on the books of the federal reserve bank
without physical delivery of any securities. A bank or trust company
acting as custodian for a fiduciary shall, on demand by the
fiduciary, certify in writing to the fiduciary the securities
deposited by the bank or trust company pursuant to this section for
the account of the fiduciary. A fiduciary shall, on demand by any
party to its accounting, certify in writing to that party the
securities deposited for its account as a fiduciary pursuant to this
section. This section shall apply to all fiduciaries and custodians
for fiduciaries, acting on the effective date of this section or who
thereafter may act regardless of the state of the instrument or court
order by which they are appointed.
