State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-159_1

§ 53‑159.1.  Power offiduciary or custodian to deposit securities in a clearing corporation.

Notwithstanding any otherprovision of law, any fiduciary holding securities in its fiduciary capacity,any bank or trust company holding securities in a fiduciary capacity or as acustodian or agent is authorized to deposit or arrange for the deposit of suchsecurities in a clearing corporation as defined in G.S. 25‑8‑102.When such securities are so deposited, certificates representing securities ofthe same class of the same issuer may be merged and held in bulk in the name ofthe nominee of such clearing corporation with any other such securitiesdeposited in such clearing corporation by any person regardless of theownership of such securities, and certificates of small denomination may bemerged into one or more certificates of larger denomination. The records ofsuch fiduciary and the records of such bank or trust company acting as afiduciary or as a custodian or managing agent shall at all times show the nameof the party for whose account the securities are so deposited. Title to suchsecurities may be transferred by bookkeeping entry on the books of suchclearing corporation without physical delivery of certificates representingsuch securities. A bank or trust company so depositing securities pursuant tothis section shall be subject to such rules as, in the case of State‑charteredinstitutions, the State Banking Commission and, in the case of national bankingassociations, the Comptroller of the Currency may from time to time issue. Abank or trust company acting as custodian or agent for a fiduciary shall, ondemand by the fiduciary, certify in writing to the fiduciary the securities sodeposited by such bank or trust company in such clearing corporation for theaccount of such fiduciary. A fiduciary shall, on demand by any party to ajudicial proceeding for the settlement of such fiduciary's account or on demandby the attorney for such party, certify in writing to such party the securitiesdeposited by such fiduciary in such clearing corporation for its account assuch fiduciary. This section shall apply to any fiduciary holding securities inits fiduciary capacity, and to any bank or trust company holding securities asa fiduciary or as a custodian or managing agent acting on May 15, 1973, or whothereafter may act regardless of the date of the agreement, instrument or courtorder by which it is appointed and regardless of whether or not such fiduciary,custodian or agent owns capital stock of such clearing corporation. Thefiduciary shall personally be liable for any loss to the trust resulting froman act of such nominee in connection with such securities so deposited. (1973, c. 497, s. 4; 1997‑181,s. 26; 2001‑263, s. 3.)