An Act to place authority over the trust powers of national banks in the Comptroller of the Currency
PL 87-722 (H.R.12577), enacted 09/28/1962

66a 
PUBLIC LAW 87-722-SEPT. 28, 1962 
[76 STAT. 
September 28, 1962 
[H. R. 12577] 
National banks. 
Tfust powers. 
Public Law 87-722 
AN ACT 
To place authority over the trust powers of national banks in the Comptroller 
of the Currency. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) the Comp-
troller of the Currency shall be authorized and empowered to grant 
by special permit to national banks applying therefor, when not in 
contravention of State or local law, the right to act as trustee, executor, 
administrator, registrar of stocks and bonds, guardian of estates, 
assignee, receiver, committee of estates of lunatics, or in any other 
fiduciary capacity in which State banks, trust companies, or other 
corporations which come into competition with national banks are 
permitted to act under the laws of the State in which the national bank 
is located. 
(b) Whenever the laws of such State authorize or permit the 
exercise of any or all of the foregoing powers by State banks, trust 
companies, or other corporations which compete with national banks, 
the granting to and the exercise of such powers by national banks shall 
not be deemed to be in contravention of State or local law within the 
meaning of this Act. 
(c) National banks exercising any or all of the powers enumerating 
in this section shall segregate all assets held in any fiduciary capacity 
from the general assets of the bank and shall keep a separate set of 
books and records showing in proper detail all transactions engaged 
in under authority of this section. The State banking authorities may 
have access to reports of examination made by the Comptroller of the 
Currency insofar as such reports relate to the trust department of 
such bank, but nothing in this Act shall be construed as authorizing 
the Stat© banking authorities to examine the books, records, and 
assets of such bank. 
(d) No national bank shall receive in its trust department deposits 
of current funds subject to check or the deposit of checks, drafts, bills 
of exchange, or other items for collection or exchange purposes. Funds 
deposited or held in trust by the bank awaiting investment shall be 
carried in a separate account and shall not be used by the bank in the 
conduct of its business unless it shall first set aside in the trust depart-
ment United States bonds or other securites approved by the Comp-
troller of the Currency. 
(e) In the event of the failure of such bank the owners of the funds 
held in trust for investment shall have a lien on the bonds or other 
securities so set apart in addition to their claim against the estate of 
the bank. 
(f) Whenever the laws of a State require corporations acting in a 
fiduciary capacity to deposit securities with the State authorities for 
the protection of private or court trusts, national banks so acting shall 
be required to make similar deposits and securities so deposited shall 
be held for the protection of private or court trusts, as provided by the 
State law. National banks in such cases shall not be required to exe-
cute the bond usually required of individuals if State corporations 
under similar circumstances are exempt from this requirement. Na-
tional banks shall have power to execute such bond when so required 
by the laws of the State. 
(g) In any case in which the laws of a State require that a corpora-
tion acting as trustee, executor, administrator, or in any capacity speci-
fied in this section, shall take an oath or make an affidavit, the presi-
dent, vice president, cashier^ or tnist officer of such national bank may 
take the necessary oath or execute the necessary affidavit. 
76 STAT. ] 
PUBLIC LAW 87-722-SEPT. 28, 1962 
669 
(h) It shall be unlawful for any national banking association to 
lend any officer, director, or employee any funds held in trust under 
the powers conferred by this section. Any officer, director, or em- 
Penalty. 
ployee making such loan, or to whom such loan is made, may be fined 
not more than $5,000, or imprisoned not more than five years, or may 
be both fined and imprisoned, in the discretion of the court. 
(i) In passing upon applications for permission to exercise the 
powers enumerated in this section, the Comptroller of the Currency 
may take into consideration the amount of capital and surplus of the 
applying bank, whether or not such capital and surplus is sufficient 
under the circumstances of the case, the needs of the community to be 
served, and any other facts and circumstances that seem to him proper, 
and may grant or refuse the application accordingly: Provided^ That 
no permit shall be issued to any national banking association having 
a capital and surplus less than the capital and surplus required by 
State law of State banks, trust companies, and corporations exercising 
such powers. 
(j) Any national banking association desiring to surrender its 
right to exercise the powers granted under this section, in order to 
relieve itself of the necessity of complying with the requirements of 
this section, or to have returned to it any securities which it may have 
deposited with the State authorities for the protection of private or 
court trusts, or for any other purpose, may file with the Comptroller 
of the Currency a certified copy of a resolution of its board of directors 
signifying such desire. Upon receipt of such resolution, the Comp-
troller of the Currency, after satisfying himself that such bank has 
been relieved in accordance with State law of all duties as trustee, 
executory, administrator, registrar of stocks and bonds, guardian of 
estates, assignee, receiver, committee of estates of lunatics or other 
fiduciary, under court, private, or other appointments previously ac-
cepted under authority of this section, may, in his discretion, issue to 
such bank a certificate certifying that such bank is no longer author-
ized to exercise the powers granted by this section. Upon the issuance 
of such a certificate by the Comptroller of the Currency, such bank 
(1) shall no longer be subject to the provisions of this section or the 
regulations of the Comptroller of the Currency made pursuant thereto, 
(2) shall be entitled to have returned to it any securities which it may 
have deposited with the State authorities for the protection of private 
or court trusts, and (3) shall not exercise thereafter any of the powers 
granted by this section without first applying for and obtaining a new 
permit to exercise such powers pursuant to the provisions of this 
section. 
The Comptroller of the Currency is authorized and em-
powered to promulgate such regulations as he may deem necessary to 
enforce compliance with the provisions of this section and the proper 
exercise of the powers granted therein. 
SEC. 2. Nothing contained in this Act shall be deemed to affect or cur- 
savings pro-
tail the right of any national bank to act in fiduciary capacities under 
a permit granted before the date of enactment of this Act by the Board 
of Governors of the Federal Reserve System, nor to affect the validity 
of any transactions entered into at any time by any national bank pur-
suant to such permit. On and after the date of enactment of this Act 
the exercise of fiduciary powers by national banks shall be subject to 
the provisions of this Act and the requirements of regulations issued 
by the Comptroller of the Currency pursuant to the authority granted 
by this Act. 
visions. 
670 
PUBUC LAW 87-723-SEPT. 28, 1962 
[76 STAT. 
Repeal. 
38 Stat. 262. 
68A Stat. 203. 
SEC. 3. Subsection (k) of section 11 of the Federal Reserve Act (12 
U.S.C. 248 (k)) is repealed. 
SEC. 4. Paragraph (2) of subsection (a) of section 584 of the In-
ternal Revenue Code of 1954 is amended by inserting "or the Comp-
troller of the Currency" immediately after "the Board of Governors of 
the Federal Reserve System". 
SEC. 5. Section 581 of the Internal Revenue Code of 1954 is amended 
by striking out "section 11 (k) of the Federal Reserve Act (38 Stat. 
262; 12 U.S.C. 248 (k))", and inserting in lieu thereof "authority of 
the Comptroller of the Currency". 
Approved September 28, 1962. 
Public Law 87-723 
September 28, 1962 
AN A C T 
[H. R. i262j]_ To provide additional funds under section 202(a) (4) of the Housing Act of 
1959, and to amend title V of the Housing Act of 1949, in order to provide 
low and moderate cost housing, both urban and rural, foi* the elderly. 
Senior Citizens 
Housing Act of 
1962. 
Leans, revolv-
ing fund. 
73 Stat. 667; 
75 Stat. 163. 
12 u s e 1701q. 
Farm housing, 
financial as-
s 1 St an ce, 
63 Stat. 432. 
42 u s e 1471. 
Be it enacted hy the Senate and lionise of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Senior Citizens Housing Act of 1962". 
SEC. 2. The Congress finds that there is a large and growing need 
for suitable housing for older people both in urban and rural areas. 
Our older citizens face special problems in meeting their housing needs 
because of the prevalence of modest and limited incomes among the 
elderly, their difficulty in obtaining liberal long-term home mortgage 
credit, and their need for housing planned and designed to include 
features necessary to the safety and convenience of the occupants in a 
suitable neighborhood environment. 
The Congress further finds that 
the present programs for housing the elderly under the Housing and 
Home Finance Agency have proven the value of Federal credit assist-
ance in this field and at the same time demonstrated the urgeijt need for 
an expanded and more comprehensive effort to meet our responsibili-
ties to our senior citizens. 
SEC. 3. (a) Section 202(a) (4) of the Housing Act of 1959 is amended 
by striking out 
"$125,000,000" and inserting in lieu 
thereof 
"$225,000,000". 
{b) Effective with respect to applications for loans under section 202 
of the Housing Act of 1959 made after the date of the enactment of 
this Act— 
(1) section 202(d) (1) of such Act is amended by striking out 
"(A)", and by striking ", and (B)" and all that follows and in-
serting in lieu thereof a period; 
(2) section 202(d) (7) of such Act is amended by striking out 
all that follows "new structures" and inserting in lieu thereof a 
:; period; and 
(3) section 202(d) (8) of such Act is amended by striking out 
"(A)", and by striking out ", and (B)" and all that follows and 
inserting in lieu thereof a period. 
SEC. 4. (a) (1) Section 501 of the Housing Act of 1949 is amended— 
(A) by striking out the period at the end of subsection (a) and 
inserting in lieu thereof the following: ", and (3) to elderly per-
sons who are or will be the owners of land in rural areas for the 
construction, improvement, alteration, or repair of dwellings and 
related facilities, the purchase of previously occupied dwellings