(a)Every bank or trust company exercising
trust powers or any powers as a fiduciary shall establish and maintain
in its office a trust department in which it shall keep, separate and apart
from its other business, separate books and accounts, and shall keep all
securities and property, other than money, which is held by its trust
department, at all times segregated from and unmingled with its own
securities and property.
(b)Notwithstanding any other law, any bank or trust company
holding securities as a fiduciary, custodian or managing agent, and any
bank or trust company holding securities as custodian for a fiduciary is
authorized to deposit or arrange for the deposit of such securities in a
clearing corporation (as defined in IC 26-1-8.1-102(a)(5)). When such
securities are deposited
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(a) Every bank or trust company exercising
trust powers or any powers as a fiduciary shall establish and maintain
in its office a trust department in which it shall keep, separate and apart
from its other business, separate books and accounts, and shall keep all
securities and property, other than money, which is held by its trust
department, at all times segregated from and unmingled with its own
securities and property.
(b) Notwithstanding any other law, any bank or trust company
holding securities as a fiduciary, custodian or managing agent, and any
bank or trust company holding securities as custodian for a fiduciary is
authorized to deposit or arrange for the deposit of such securities in a
clearing corporation (as defined in IC 26-1-8.1-102(a)(5)). When such
securities are deposited in a clearing corporation, certificates
representing securities of the same class of the same issuer may be
merged and held in bulk in the name of the nominee of the clearing
corporation by any person regardless of the ownership of the securities;
and certificates of small denomination may be merged into one (1) or
more certificates of larger denomination. The records of the fiduciary
and the records of the bank or trust company acting as custodian,
managing agent, or custodian for a fiduciary shall at all times show the
name of the party for whose account the securities are deposited.
(c) This section applies to any bank or trust company holding
securities as a fiduciary, custodian, managing agent or custodian for a
fiduciary, regardless of whether it owns capital stock of the clearing
corporation.
(d) Title to the securities held by the clearing corporation may be
transferred by bookkeeping entry on the books of the clearing
corporation without physical delivery of certificates representing such
securities.
(e) A bank or trust company acting as custodian for a fiduciary,
shall, upon demand by the fiduciary, certify in writing to the fiduciary
the securities deposited by such fiduciary in such clearing corporation
for its account as fiduciary.
(f) Notwithstanding any other law, any bank or trust company
holding United States government securities as a fiduciary, custodian
or managing agent, and any bank or trust company holding United
States government securities as custodian for a fiduciary may use the
Federal Reserve Book-Entry procedure for the United States
government securities. The records of such fiduciary and the records
of such bank or trust company acting as custodian, managing agent, or
custodian for a fiduciary shall at all times show the name of the party
for whose account the United States government securities are
deposited.
(g) Title to the United States government securities registered by
Book-Entry under subsection (f) may be transferred by bookkeeping
entry on the books of the Federal Reserve without physical delivery of
certificates representing the securities.
(h) A bank or trust company acting as custodian for a fiduciary,
shall, upon demand by the fiduciary, certify in writing to the fiduciary
the securities registered in the Federal Reserve for the account of the
fiduciary.
(i) Notwithstanding any other law, a bank or trust company, to the
extent that it exercises investment discretion as a fiduciary, custodian,
managing agent, or otherwise with respect to the investment and
reinvestment of assets that it maintains in its trust department, may
invest and reinvest the assets, subject to the standard contained in IC 30-4-3-3(c), in the securities of any open-end or closed-end
management investment company or investment trust registered under
the Investment Company Act of 1940, 15 U.S.C. 80a1-64, as amended.
The fact that the bank or trust company, or any affiliate of the bank or
trust company, is providing services to the investment company or trust
as investment advisor, sponsor, distributor, custodian, transfer agent,
registrar, or otherwise, and receiving reasonable remuneration for the
services, does not preclude the bank or trust company from investing
in the securities of such investment company or trust.
Formerly: Acts 1933, c.40, s.185. As amended by Acts 1977,
P.L.290, SEC.1; P.L.257-1989, SEC.1; P.L.247-1995, SEC.25.