§ 6.2-1010. (Effective October 1, 2010) Holding stock or other securities asfiduciary.
A. A trust institution holding stock or other securities as fiduciary mayhold it in the name of a nominee without mention of the trust in the stockcertificate or stock registry book or other book in which such securities areregistered. A fiduciary registering stock or other securities in the name ofa nominee as herein permitted, shall (i) clearly show upon its trust recordsthe ownership of the stock or other securities by the fiduciary and the factsregarding its holding and (ii) provide that the nominee shall not havepossession of the stock certificate or other securities nor access theretoexcept under the immediate supervision of the fiduciary. The fiduciary shallbe personally liable for any loss to the trust resulting from any act of suchnominee in connection with stock or other securities so held. Any individualserving as cofiduciary with a trust institution may consent to the trustinstitution holding such stock or other securities in the name of a nomineeas herein provided; however, in such case the trust institution shallforthwith upon demand of the individual cofiduciary cause the stock or othersecurities to be transferred into the name of the fiduciaries in theirfiduciary capacity.
B. Notwithstanding the provision relating to possession of the nominee, thetrust institution may permit such certificates or other securities to remainin the possession of the nominee or a clearing corporation as defined in §8.8A-102, within or without the Commonwealth, if the trust institutionobtains adequate protection, through insurance or otherwise, against loss ofsuch certificates or securities due to lack of possession by the fiduciary orpossession thereof by the nominee or a clearing corporation.
C. The Commissioner or other appropriate regulatory official may review inadvance and approve the protection through insurance or otherwise againstloss due to lack of possession of these certificates or securities by thefiduciary.
(Code 1950, § 6-103.1; 1958, c. 283; 1966, c. 584, § 6.1-31; 1972, c. 739;1974, c. 665; 1978, c. 14; 2010, c. 794.)
§ 6.2-1010. (Effective October 1, 2010) Holding stock or other securities asfiduciary.
A. A trust institution holding stock or other securities as fiduciary mayhold it in the name of a nominee without mention of the trust in the stockcertificate or stock registry book or other book in which such securities areregistered. A fiduciary registering stock or other securities in the name ofa nominee as herein permitted, shall (i) clearly show upon its trust recordsthe ownership of the stock or other securities by the fiduciary and the factsregarding its holding and (ii) provide that the nominee shall not havepossession of the stock certificate or other securities nor access theretoexcept under the immediate supervision of the fiduciary. The fiduciary shallbe personally liable for any loss to the trust resulting from any act of suchnominee in connection with stock or other securities so held. Any individualserving as cofiduciary with a trust institution may consent to the trustinstitution holding such stock or other securities in the name of a nomineeas herein provided; however, in such case the trust institution shallforthwith upon demand of the individual cofiduciary cause the stock or othersecurities to be transferred into the name of the fiduciaries in theirfiduciary capacity.
B. Notwithstanding the provision relating to possession of the nominee, thetrust institution may permit such certificates or other securities to remainin the possession of the nominee or a clearing corporation as defined in §8.8A-102, within or without the Commonwealth, if the trust institutionobtains adequate protection, through insurance or otherwise, against loss ofsuch certificates or securities due to lack of possession by the fiduciary orpossession thereof by the nominee or a clearing corporation.
C. The Commissioner or other appropriate regulatory official may review inadvance and approve the protection through insurance or otherwise againstloss due to lack of possession of these certificates or securities by thefiduciary.
(Code 1950, § 6-103.1; 1958, c. 283; 1966, c. 584, § 6.1-31; 1972, c. 739;1974, c. 665; 1978, c. 14; 2010, c. 794.)
§ 6.2-1010. (Effective October 1, 2010) Holding stock or other securities asfiduciary.
A. A trust institution holding stock or other securities as fiduciary mayhold it in the name of a nominee without mention of the trust in the stockcertificate or stock registry book or other book in which such securities areregistered. A fiduciary registering stock or other securities in the name ofa nominee as herein permitted, shall (i) clearly show upon its trust recordsthe ownership of the stock or other securities by the fiduciary and the factsregarding its holding and (ii) provide that the nominee shall not havepossession of the stock certificate or other securities nor access theretoexcept under the immediate supervision of the fiduciary. The fiduciary shallbe personally liable for any loss to the trust resulting from any act of suchnominee in connection with stock or other securities so held. Any individualserving as cofiduciary with a trust institution may consent to the trustinstitution holding such stock or other securities in the name of a nomineeas herein provided; however, in such case the trust institution shallforthwith upon demand of the individual cofiduciary cause the stock or othersecurities to be transferred into the name of the fiduciaries in theirfiduciary capacity.
B. Notwithstanding the provision relating to possession of the nominee, thetrust institution may permit such certificates or other securities to remainin the possession of the nominee or a clearing corporation as defined in §8.8A-102, within or without the Commonwealth, if the trust institutionobtains adequate protection, through insurance or otherwise, against loss ofsuch certificates or securities due to lack of possession by the fiduciary orpossession thereof by the nominee or a clearing corporation.
C. The Commissioner or other appropriate regulatory official may review inadvance and approve the protection through insurance or otherwise againstloss due to lack of possession of these certificates or securities by thefiduciary.
(Code 1950, § 6-103.1; 1958, c. 283; 1966, c. 584, § 6.1-31; 1972, c. 739;1974, c. 665; 1978, c. 14; 2010, c. 794.)
