NY Est Pow & Trusts L § 11-1.6 (2021)
2021 New York Laws EPT - Estates, Powers and Trusts Article 11 - Fiduciary: Powers, Duties and Limitations; Actions by or Against in Representative or Individual Capacities Part 1 - Fiduciaries: Powers, Duties and Limitations 11-1.6 - Property Held as Fiduciary to Be Kept Separate

§ 11-1.6 Property held as fiduciary to be kept separate  (a) Every fiduciary shall keep property received as fiduciary separate from  his  individual  property.  He  shall  not  invest or deposit such property with any corporation or other person doing business  under  the banking  law,  or with any other person or institution, in his own name, but all transactions by him affecting such property shall be in his name as fiduciary; provided, however, that any bank or  trust  company,  when acting  as  fiduciary,  whether alone or jointly with an individual, may with the consent of the individual fiduciary,  if  any  (who  is  hereby authorized  to  give  such  consent),  register  and hold stock or other securities (referred to in this section as "securities") in the name  of the  nominee  of such bank or trust company; and provided, further, that any individual acting as fiduciary is authorized to direct any  bank  or trust  company  incorporated  under the laws of this state, any national bank located in this state or any private banker duly authorized by  the superintendent of financial services of this state to engage in business here  (who, as private banker, maintains a permanent capital of not less than one million dollars) to register and hold  any  securities  in  the name  of  a  nominee  of  such  bank,  trust  company  or private banker (referred to in this section as "bank"). Such bank shall  not  redeliver such  securities  to  the  individual  fiduciary,  who  authorized their registration in the name  of  a  nominee  of  the  bank,  without  first registering  the  securities in the name of the individual fiduciary, as such. But, any sale of such securities by the bank at the  direction  of the  individual fiduciary shall not be treated as a redelivery. The bank may make any disposition of  such  securities  which  is  authorized  or directed  by  an order or decree of the court having jurisdiction of the estate or trust.  (b) Any bank shall be absolutely liable for any loss occasioned by the acts of its nominee with respect to the securities so registered.  (c) The records of such bank shall at all times show the ownership  of any  such  securities  and of those held in bearer form. Such securities and those held in bearer form shall at all times be kept  separate  from the assets of the bank and may be kept by such bank  (A) in a manner such that all certificates representing the securities from  time to time constituting the assets of a particular estate, trust or other fiduciary account are held separate from  those  of  all  other estates, trusts or other fiduciary accounts; or  (B)  in  a  manner  such  that,  without certification as to ownership attached, certificates representing securities of the same class of  the same  issuer  and  from  time  to time constituting assets of particular estates, trusts or other fiduciary accounts are held in bulk, including, to  the  extent  feasible,  the  merging  of   certificates   of   small denomination  into  one  or  more  certificates  of  large denomination, provided that a bank, when operating under  the  method  of  safekeeping security  certificates  described  in  this  subparagraph  (B), shall be subject to such rules and regulations as, in the case of state chartered institutions, the state superintendent of financial services and, in the case of national banking associations, the comptroller of  the  currency may  from  time  to  time  issue.  Such  banks  shall,  on demand by the fiduciary, certify in writing the securities held for such fiduciary.  (d) Any person violating any of the provisions of this  section  shall be guilty of a misdemeanor.  (e)  This  section  shall  apply  to  all  estates  and  trusts now in existence or which may hereafter come into existence.