KRS § 386.165 — KY Code / Title XXXIII / Chapter 386 / Section 386.165
386.165 Deposit of securities in a clearing corporation -- Accounting and crediting of deposits
Status: in_force

386.165 Deposit of securities in a clearing corporation -- Accounting and crediting

of deposits.

(1) Notwithstanding any other provision of law, any fiduciary holding securities in its

fiduciary capacity, any bank or trust company holding securities as a custodian or

managing agent, 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 KRS 355.8-102. When such securities are so

deposited, 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 such clearing

corporation with any other such securities deposited in such clearing corporation by

any person regardless of the ownership of such securities, and certificates of small

denomination may be merged into one (1) or more certificates of larger

denomination. The records of such fiduciary and the records of such bank or trust

company acting as custodian, as managing agent or as custodian for a fiduciary shall

at all times show the name of the party for whose account the securities are so

deposited. Title to such securities may be transferred by bookkeeping entry on the

books of such clearing corporation without physical delivery or certificates

representing such securities. A bank or trust company depositing securities pursuant

to this section shall be subject to such rules and regulations with respect to the

making and maintenance of such deposit as, in the case of a bank or trust company

organized under the laws of this state, the executive director of financial institutions

and, in the case of national banking associations, the comptroller of the currency

may from time to time issue. A bank or trust company acting as custodian for a

fiduciary shall, on demand of the fiduciary, certify in writing to the fiduciary the

securities so deposited by such bank or trust company in such clearing corporation

for the account of such fiduciary. A fiduciary shall, on demand by any party to its

accounting or on demand by the attorney for such party, certify in writing to such

party the securities deposited by such fiduciary in such clearing corporation for its

account as such fiduciary.

(2) This section shall apply to any fiduciary holding securities in a fiduciary capacity,

and to any bank or trust company holding securities as a custodian, managing agent

or custodian for a fiduciary, acting on June 21, 1974, or who thereafter may act

regardless of the date of the agreement, instrument or court order by which it is

appointed and regardless of whether or not such fiduciary, custodian, managing

agent or custodian for a fiduciary owns capital stock of such clearing corporation.

(3) As used in this section, "fiduciary" includes an executor, administrator, trustee

under any trust, express, implied, resulting or constructive, guardian, conservator,

receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent,

officer of a corporation, public or private, public officer or any other person acting

in a fiduciary capacity for any person, trust or estate.