Sec. 36a-352. (Formerly Sec. 36-81). Segregation of trust funds. Registration; nominees. - Connecticut Statutes

      Sec. 36a-352. (Formerly Sec. 36-81). Segregation of trust funds. Registration; nominees. (a) All investments held by or in the custody of a bank as a fiduciary shall, except as otherwise provided by law or unless the contrary is expressly permitted by the instrument or court order creating the fiduciary relationship, be segregated and not mingled with other assets of such bank or with the assets of any other fiduciary account, and shall, except as provided in subsection (b) of this section or as otherwise provided in the instrument or the court order creating the fiduciary relationship, be held so as to set forth clearly the fiduciary capacity in which such bank is acting.

      (b) Such bank, in the absence of an express provision to the contrary in the instrument or court order creating such fiduciary relationship, may cause stocks and other securities held by it or in its custody as a fiduciary, whether alone or jointly with cofiduciaries, to be registered and held in the name of a nominee or nominees of such bank without mention of such fiduciary relationship, provided every cofiduciary of such fiduciary account shall give his prior written consent. A fiduciary shall retain possession of such stocks and other securities so held and shall maintain adequate records indicating the correct ownership thereof except that such bank may deposit stock or other securities so held in a clearing corporation as defined in subdivision (5) of subsection (a) of section 42a-8-102. The fiduciary shall be personally liable for any loss occasioned by the acts of any nominee of such bank in connection with the holding of stock and other securities in the name of such nominee.

      (c) Such bank, in the absence of an express provision to the contrary in the instrument or court order creating such fiduciary relationship, may cause stocks and other securities held by it or in its custody as fiduciary whether alone or jointly with cofiduciaries, (1) to be registered in the name of each such account or (2) to be registered in the name of the bank as fiduciary, or in the name of a nominee or nominees as provided in subsection (b) in one or more certificates or other documents evidencing ownership of such securities, any one of which certificates or documents shall represent the stock or securities held in more than one account, but such bank shall keep separate records of all such stocks and other securities for each account for which such stock and other securities are held.

      (d) All the individual trustees of a trust may, in the absence of an express provision to the contrary in the instrument or court order creating such trust, deliver stock or other securities of the trust to a bank and authorize such bank to register and hold the same in the name of a nominee or nominees of such bank, as provided in subsection (b) of this section. Such bank shall not redeliver stock or other securities to an individual trustee or trustees without first causing the stock or other securities to be registered in the name of the individual trustee or trustees as such; but this provision shall not apply to other transfers or sales made by a bank at the direction of an individual trustee or trustees and such bank and its nominee shall be held to have discharged their liabilities by accounting for or paying over the proceeds of any sale or transfer made as so directed.

      (1949 Rev., S. 5803; 1955, S. 2660d; 1971, P.A. 419; 1972, P.A. 169, S. 3; P.A. 92-12, S. 28; P.A. 94-122, S. 165, 340; P.A. 03-19, S. 82.)

      History: 1971 act inserted new Subsec. (3) re registration of stocks and securities, renumbering former Subsecs. (3) and (4) accordingly and defined "security" in Subsec. (5), formerly (4); 1972 act allowed deposit of stock or securities in a clearing corporation; P.A. 92-12 redesignated Subsecs. and Subdivs. and made technical changes; P.A. 94-122 clarified that all funds held by a bank in any fiduciary capacity are subject to the same segregation and registration provisions as apply to trust funds, effective January 1, 1995; Sec. 36-81 transferred to Sec. 36a-352 in 1995; P.A. 03-19 made a technical change in Subsec. (b), effective May 12, 2003.

      Annotations to former section 36-81:

      Cited. 115 C. 27. Trustee should not take note or mortgage in own name, but in the name of the trust or as trustee for a particular trust. 121 C. 558.