N.Y. EPT Law § 11-1.6 — New York Code / Act EPT / Article 11 / Part 1 / Section 11-1.6
Property held as fiduciary to be kept separate
Status: in_force

§ 11-1.6 Property held as fiduciary to be kept separate\n  (a) Every fiduciary shall keep property received as fiduciary separate\nfrom his individual property. He shall not invest or deposit such\nproperty with any corporation or other person doing business under the\nbanking law, or with any other person or institution, in his own name,\nbut all transactions by him affecting such property shall be in his name\nas fiduciary; provided, however, that any bank or trust company, when\nacting as fiduciary, whether alone or jointly with an individual, may\nwith the consent of the individual fiduciary, if any (who is hereby\nauthorized to give such consent), register and hold stock or other\nsecurities (referred to in this section as "securities") in the name of\nthe nominee of such bank or trust company; and provided, further, that\nany individual acting as fiduciary is authorized to direct any bank or\ntrust company incorporated under the laws of this state, any national\nbank located in this state or any private banker duly authorized by the\nsuperintendent of financial services of this state to engage in business\nhere (who, as private banker, maintains a permanent capital of not less\nthan one million dollars) to register and hold any securities in the\nname of a nominee of such bank, trust company or private banker\n(referred to in this section as "bank"). Such bank shall not redeliver\nsuch securities to the individual fiduciary, who authorized their\nregistration in the name of a nominee of the bank, without first\nregistering the securities in the name of the individual fiduciary, as\nsuch. But, any sale of such securities by the bank at the direction of\nthe individual fiduciary shall not be treated as a redelivery. The bank\nmay make any disposition of such securities which is authorized or\ndirected by an order or decree of the court having jurisdiction of the\nestate or trust.\n  (b) Any bank shall be absolutely liable for any loss occasioned by the\nacts of its nominee with respect to the securities so registered.\n  (c) The records of such bank shall at all times show the ownership of\nany such securities and of those held in bearer form. Such securities\nand those held in bearer form shall at all times be kept separate from\nthe assets of the bank and may be kept by such bank\n  (A) in a manner such that all certificates representing the securities\nfrom time to time constituting the assets of a particular estate, trust\nor other fiduciary account are held separate from those of all other\nestates, trusts or other fiduciary accounts; or\n  (B) in a manner such that, without certification as to ownership\nattached, certificates representing securities of the same class of the\nsame issuer and from time to time constituting assets of particular\nestates, trusts or other fiduciary accounts are held in bulk, including,\nto the extent feasible, the merging of certificates of small\ndenomination into one or more certificates of large denomination,\nprovided that a bank, when operating under the method of safekeeping\nsecurity certificates described in this subparagraph (B), shall be\nsubject to such rules and regulations as, in the case of state chartered\ninstitutions, the state superintendent of financial services and, in the\ncase of national banking associations, the comptroller of the currency\nmay from time to time issue. Such banks shall, on demand by the\nfiduciary, certify in writing the securities held for such fiduciary.\n  (d) Any person violating any of the provisions of this section shall\nbe guilty of a misdemeanor.\n  (e) This section shall apply to all estates and trusts now in\nexistence or which may hereafter come into existence.\n