Deposit of Securities With Federal Reserve Bank; Crediting Deposit; Designating Fiduciary Account; Records to Show Ownership of Securities Held in Account; Transfer of Securities.

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Sec. 4.

A corporation when acting as fiduciary, as provided in section 1, may deposit, or arrange for the deposit, with a federal reserve bank, of securities, the principal and interest of which the United States or a department, agency, or instrumentality thereof has agreed to pay, or has guaranteed payment. The deposit of securities shall be credited to 1 or more accounts on the books of the federal reserve bank in the name of the corporation, and designated a fiduciary account, as distinguished from a safekeeping account, to which account other similar securities may be credited. The records of the corporation depositing securities shall show the ownership of the securities held in the account. Ownership of, and other interests in, the securities credited to the account, may be transferred by entries on the books of the federal reserve bank without physical delivery of securities.

History: Add. 1975, Act 310, Imd. Eff. Dec. 22, 1975


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