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COPY 419 TREASURE DEEARmUT . X~»750 mSHINGTOU December 9 , 1926. Federal Reserve Board, Washington, D. C, t Gentlemen: For the purpose of informing n a t i o n a l Bank Examiners wnat are lawful investments f o r t r u s t f u n d s , under the S t a t e laws, to be used when tuey examine t r u s t departments, and i n order t h a t we may i n t e l l i g e n t l y take up v i o l a t i o n s with any n a t i o n a l banks t h a t may not be complying with the law i n connection with Section 6 of the Regulations of the Federal Reserve Board * i t i s r e s p e c t f u l l y requested t h a t we be f u r n i s h e d , through the Law Departments of the Federal Reserve Banks, a memorandum s e t t i n g out the p r o v i s i o n s of the laws of the various S t a t e s s e p c i f y i n g the kind of investments i n which corporate f i d u c i a r i e s may l a w f u l l y i n v e s t . End. S e c t i o n 11 (k) of the F e d e r a l Reserve Act provides in p a r t : "Whenever'the laws of a S t a t e r e q u i r e c o r p o r a t i o n s in a f i d u c i a r y c a p a c i t y , to d e p o s i t s e c u r i t i e s with the S t a t e a u t h o r i t i e s f o r the p r o t e c t i o n of p r i v a t e or court t r u s t s , n a t i o n a l banks so a c t i n g s h a l l be r e q u i r e d to make s i m i l a r d e p o s i t s and s e c u r i t i e s so deposited s h a l l be held f o r the p r o t e c t i o n of p r i v a t e or court t r u s t s , as provided by S t a t e law." In connection with the above, a s i m i l a r statement s e t t i n g f o r t h the requirements of the various S t a t e s f o r the deposit by n a t i o n a l banks of s e c u r i t i e s with Stiite a u t h o r i t i e s b e f o r e they may e x e r c i s e f i d u c i a r y powers , i s desired» Respectfully, (Sgd.) E. W. STEARKS Deputy Comptroller.
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