2023 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.