6.2-1006 - (Effective October 1, 2010) Custody of trust securities to be kept separate; federal securities and obligations. - Virginia Statutes

§ 6.2-1006. (Effective October 1, 2010) Custody of trust securities to bekept separate; federal securities and obligations.

A. The securities and investments held in each trust shall be kept separateand distinct from the securities owned by the trust institution. The trustinstitution shall at all times show upon its trust records the interests ofeach separate fiduciary account and trust in each particular security orinvestment held by it in a fiduciary capacity. Trust securities andinvestments shall be placed in the joint custody or control of two or moreofficers or other employees designated by the board of directors of the trustinstitution. Such joint custody shall be interpreted to mean that neither ofsuch officers or employees shall have access alone at any time to suchsecurities and investments. All such officers and employees shall be bonded.

B. Securities and obligations of the United States and of agencies of theUnited States government may be held for the account of the trust institutionby a Federal Reserve Bank in a book-entry custody account, without therequirement of the trust institution having physical possession of suchsecurities, provided at all times that the records of the Federal ReserveBank and the trust institution shall at all times identify separately thosesecurities held for the account of the trust institution and those held bythe trust institution in a fiduciary capacity.

(Code 1950, § 6-100; 1966, c. 584, § 6.1-22; 1968, c. 59; 1974, cc. 75, 665;2010, c. 794.)