§ 35-3-118 — Stocks or bonds held by fiduciary in nominee's name

(a) Trustees, guardians and other fiduciaries owning stocks or registered bonds may hold them in the name of a nominee without mention of the fiduciary relationship in the stock certificates, stock registration books, or registered bond or bond registry; provided, that: (1) The records and all reports and accounts rendered by the fiduciary clearly show the ownership of the stock or bond by the fiduciary, and the facts regarding its holding; and (2) The nominee deposits with the fiduciary a signed statement showing the fiduciary ownership, either endorses the stock certificate or registered bond in blank, or signs a transfer power in blank, and attach it to the certificate or bond, and does not have possession of or access to the stock certificate or bond, except under the immediate supervision of the fiduciary. (b) The fiduciary shall be personally liable for any loss resulting from any act of the nominee in connection with the securities so held. (c) This section shall apply to all such fiduciary relationships.

Legislative History

Acts 1953, ch. 165, §§ 1, 3 (Williams, § 9596.8b); 1957, ch. 49, § 1; T.C.A. (orig. ed.), § 35-325.