6.1-31 - (Repealed effective October 1, 2010) Bank, trust company or trust subsidiary holding stock or other securities as fiduciary.
§ 6.1-31. (Repealed effective October 1, 2010) Bank, trust company or trustsubsidiary holding stock or other securities as fiduciary.
A bank, trust company or trust subsidiary holding stock or other securitiesas fiduciary may hold it in the name of a nominee without mention of thetrust in the stock certificate or stock registry book or other book in whichsuch securities are registered. A fiduciary registering stock or othersecurities in the name of a nominee as herein permitted, shall (1) clearlyshow upon its trust records the ownership of the stock or other securities bythe fiduciary and the facts regarding its holding, and (2) shall provide thatthe nominee shall not have possession of the stock certificate or othersecurities nor access thereto except under the immediate supervision of thefiduciary. The fiduciary shall be personally liable for any loss to the trustresulting from any act of such nominee in connection with stock or othersecurities so held. Any individual serving as cofiduciary with a bank, trustcompany or trust subsidiary may consent to the bank, trust company or trustsubsidiary holding such stock or other securities in the name of a nominee asherein provided, but provided further in such case said bank, trust companyor trust subsidiary shall forthwith upon demand of said individualcofiduciary cause said stock or other securities to be transferred into thename of the fiduciaries in their fiduciary capacity.
Notwithstanding the provision relating to possession of the nominee, suchbank fiduciary, trust company or trust subsidiary may permit suchcertificates or other securities to remain in the possession of the nomineeor a clearing corporation as defined in § 8.8A-102, within or without theCommonwealth, if such bank fiduciary, trust company or trust subsidiaryobtain adequate protection through insurance or otherwise against loss ofsuch certificates or securities due to lack of possession by the fiduciary orpossession thereof by the nominee or a clearing corporation. The Commissionerof Financial Institutions or other appropriate regulatory official shall havethe power to review in advance and approve the protection through insuranceor otherwise against loss due to lack of possession of these certificates orsecurities by the fiduciary.
(Code 1950, § 6-103.1; 1958, c. 283; 1966, c. 584; 1972, c. 739; 1974, c.665; 1978, c. 14.)