§412:8-202  Acting as agent.  (a)  A
trust company may act as an agent in behalf of a principal in the transaction
of any business or in the management of any property, real, personal or mixed,
with such powers as the trust company may exercise under sections 412:8-200 and
412:8-201; provided, that its duties as such agent and the terms and conditions
of the agency or power are set forth either specifically or generally in a
written memorandum signed by the principal.



(b)  Every trust company undertaking or
continuing to act as agent for any principal pursuant to this section shall
mail or deliver to the principal or any authorized representative of the
principal at stated intervals, not less frequently than once a year, and at the
termination of the agency, a written statement of account setting forth:



(1)  All receipts and disbursements since the
inception of the agency or the last previous account rendered under this
paragraph, as the case may be, in such detail as will identify all properties
purchased or sold during the period;



(2)  The credit or debit balance, as the case may be,
as of the final date of the accounting period; and



(3)  A complete inventory of all properties, whether
real, personal, or mixed, title to or custody or safekeeping of which is then
held by the trust company for the account of the principal.  The account shall
contain such segregation of principal and income as the principal in writing
specifically requires.



(c)  Unless previously barred by adjudication,
consent or limitation, any claim against an agent for breach of fiduciary duty
in connection with the agency relationship is barred as to any principal to
whom the agent has mailed or delivered an annual or final accounting fully
disclosing the matter in question unless a proceeding to assert the claim is
commenced within two years after the annual or final accounting has been mailed
or delivered to the principal.  In any event and notwithstanding lack of full
disclosure, an agent who has mailed or delivered an annual or final accounting
to the principal and has informed the principal of the location and
availability of records for the principal's examination is protected after
three years from the date such accounting was mailed or delivered.



(d)  Every trust company shall have on hand at
all times in actual money of the United States an amount equal to at least
twelve per cent of all agency credit balances payable on demand and of accounts
payable, plus at least five per cent of all agency credit balances payable on
time; provided that such reserve may be deposited payable on demand in banks
and other trust companies approved by the commissioner or may be cash in the
vaults of the trust company.



(e)  The requirements of this section shall not
apply to occasional or isolated acts performed under special instructions or at
the special request of a principal who is not a general or regular client of
the trust company. [L 1993, c 350, pt of §1]