386.165 Deposit of securities in a clearing corporation -- Accounting and crediting
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/ky/386-165A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
of deposits.
(1)Notwithstanding any other provision of law, any fiduciary holding securities in its
fiduciary capacity, any bank or trust company holding securities as a custodian or
managing agent, any bank or trust company holding securities as custodian for a
fiduciary, is authorized to deposit or arrange for the deposit of such securities in a
clearing corporation as defined in KRS 355.8-102. When such 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 such clearing
corporation with any other such securities deposited in such clearing corporation by
any person regardless of the ownership of such securities, and certificates of small
denomination may be merged into one
(1)or more certificates of larger
denomination. The records of such fiduciary and the records of such bank or trust
company acting as custodian, as managing agent or as custodian for a fiduciary shall
at all times show the name of the party for whose account the securities are so
deposited. Title to such securities may be transferred by bookkeeping entry on the
books of such clearing corporation without physical delivery or certificates
representing such securities. A bank or trust company depositing securities pursuant
to this section shall be subject to such rules and regulations with respect to the
making and maintenance of such deposit as, in the case of a bank or trust company
organized under the laws of this state, the executive director of financial institutions
and, in the case of national banking associations, the comptroller of the currency
may from time to time issue. A bank or trust company acting as custodian for a
fiduciary shall, on demand of the fiduciary, certify in writing to the fiduciary the
securities so deposited by such bank or trust company in such clearing corporation
for the account of such fiduciary. A fiduciary shall, on demand by any party to its
accounting or on demand by the attorney for such party, certify in writing to such
party the securities deposited by such fiduciary in such clearing corporation for its
account as such fiduciary.
(2)This section shall apply to any fiduciary holding securities in a fiduciary capacity,
and to any bank or trust company holding securities as a custodian, managing agent
or custodian for a fiduciary, acting on June 21, 1974, or who 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 such fiduciary, custodian, managing
agent or custodian for a fiduciary owns capital stock of such clearing corporation.
(3)As used in this section, "fiduciary" includes an executor, administrator, trustee
under any trust, express, implied, resulting or constructive, guardian, conservator,
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.