2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 1 - Fiduciary Obligations and Investments › Section 46-1-12 - Power of fiduciary or custodian to deposit securities in a central depository.

A. Notwithstanding any other provision of law, any fiduciary holding securities in its fiduciary capacity, and any bank or trust company holding securities as a custodian or managing agent, is authorized to deposit or arrange for the deposit of the securities in a clearing corporation as defined in Subsection C[(a)(5)] of Section 55-8-102 NMSA 1978. When 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 the clearing corporation with any other such securities deposited in the clearing corporation by any person, regardless of the ownership of the securities, and certificates of small denomination may be merged into one or more certificates of larger denomination. The records of the fiduciary and the records of the bank or trust company acting as custodian or as managing agent shall at all times show the name of the party for whose account the securities are deposited. Title to the securities may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities. A bank or trust company depositing securities pursuant to this section shall be subject to such rules and regulations as, in the case of state chartered institutions, the commissioner of banking [director of the financial institutions division] and, in the case of national banking associations, the comptroller of the currency may from time to time issue. A fiduciary shall, on demand by any party for a judicial proceeding for the settlement of the fiduciary's account, or on demand by the attorney for the party, certify in writing to the party the securities deposited by the fiduciary in the clearing corporation for its account as the fiduciary.
B. This section shall apply to any fiduciary holding securities in its fiduciary capacity, and to any bank or trust company holding securities as a custodian or managing agent, acting on the effective date of this section or which 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 the fiduciary, custodian or managing agent owns capital stock of the clearing corporation.
C. As used in this section, "fiduciary" includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, 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.
History:
1953 Comp., § 33-1-36, enacted by Laws 1973, ch. 76, § 1.
ANNOTATIONS
Bracketed material.
— The bracketed material in Subsection A was inserted by the compiler. Following the 1996 revision of Article 8 of the U.C.C., "clearing corporation" is now defined in 55-8-102(a)(5) NMSA 1978. Laws 1977, ch. 245, § 120, amending 58-1-32 NMSA 1978, provides that "upon the effective date of the Commerce and Industry Department Act, the title of commissioner of banking shall be changed to the 'director of the financial institutions division.' " Laws 1977, ch. 245, § 239 makes the act effective on March 31, 1978. The bracketed material was not enacted by the legislature, and it is not a part of the law.