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FEDERAL RESERVE BOARD WASHINGTON X-6736 ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD October 17, 1930. SUBJECT: Surrender of Trust Powers by National Banks. Dear S i r : Section l l ( k ) of the Federal Reserve Act with r e f e r e n c e to t r u s t powers of n a t i o n a l banks was amended by Act of Congress approved June 26, 1930, so as to provide t h a t such banks might v o l u n t a r i l y s u r r e n d e r the r i g h t to a c t i n t r u s t c a p a c i t i e s . The Federal Reserve Board on October 17, 1930 amended i t s Regulation F so as to provide a procedure f o r the surrender of t r u s t powers by a n a t i o n a l bank p u r suant to the r e c e n t amendment to t h e s t a t u t e . The only important change made i n the r e g u l a t i o n was the adoption of a new Section XIV which i s s e t f o r t h below. The adoption of t h i s s e c t i o n made i t nece s s a r y to renumber subsequent s e c t i o n s of the r e g u l a t i o n accordingly; and S e c t i o n I of the r e g u l a t i o n , which s e t s f o r t h the p r o v i s i o n s of Section l l ( k ) o f . t h e Federal Reserve Act, was amended so as to s e t f o r t h th e s e p r o v i s i o n s of the s t a t u t e i n the form as amended by the Act of June 26, 1930* The r e g u l a t i o n i n i t s amended form iti d e s i g n a t e d Regulation F, Series of 1930. The new s e c t i o n numbered XIV i s as f o l l o w s : "SECTION XlVi SURRENDER OF TRUST POWERS. "(a) P r o c e d u r e . - Any n a t i o n a l bank which has been g r a n t e d the r i g h t by the Federal Reserve Board, pursuant to Section l l ( k ) of the Federal Reserve Act, to a c t i n any f i d u c i a r y c a p a c i t y or c a p a c i t i e s and which d e s i r e s t o s u r render such r i g h t , s h a l l s i g n i f y such d e s i r e through a r e s o l u t i o n adopted by i t s board of d i r e c t o r s . A p r o p e r l y c e r t i f i e d copy of such r e s o l u t i o n of i t s board of d i r e c t o r s should be f i l e d with the Federal Reserve Agent of the d i s t r i c t i n which such n a t i o n a l bank i s l o c a t e d and should be accompanied by (1) a l e t t e r s t a t i n g the reason why, or the purpose f o r which, such n a t i o n a l bank wishes to surrender i t s r i g h t to e x e r c i s e t r u s t powers, u n l e s s such reason or purpose s h a l l have been amply s t a t S d i n the r e s o l u t i o n i t s e l f ; and (2) the permit or p e r m i t s p r e v i o u s l y granted by the Federal Reserve Board to such n a t i o n a l bank g r a n t i n g i t the r i g h t to a c t i n any f i d u c i a r y c a p a c i t y , except t h a t i n case any such permit s h a l l have been l o s t or destroyed an a f f i d a v i t by any o f f i c e r of such n a t i o n a l bank as to such l o s s or d e s t r u c t i o n may be f i l e d i n l i e u of such l o s t or destroyed p e r m i t . A l l such documents f i l e d with the ^ 7 6 •• 2 •" X-6736 Federal Reserve Agent s h a l l "be promptly forwarded, by him to the Federal Reserve Board with a recommendation as to the a c t i o n to be taken by the Federal Reserve Board. "(b) Examination. Upon r e c e i p t of such documents, the Federal Reserve Board w i l l r e q u e s t the Comptroller of the Currency, upon the occasion of the next regular examination of such n a t i o n a l bank, to have the examiner make a s p e c i a l i n v e s t i g a t i o n of the t r u s t department of the bank i n order t o determine whether the bank has a c t u a l l y accepted or undertaken the e x e r c i s e of any t r u s t , whether under c o u r t , p r i v a t e or other appointment, pui>suant to a u t h o r i t y granted under Section l l ( k ) of the Federal Reserve Act; and i f so, whether i t appears from the records of the t r u s t department i n the case of each t r u s t so accepted or undertaken: " ( l ) That the d u t i e s of the bank a s f i d u c i a r y have been completely performed or t h a t a s u b s t i t u t e f i d u c i a r y has been appointed i n accordance with the S t a t e law; u ( 2 ) That a f i n a l account has been f i l e d by the bank, and t h a t such account has been approved by the court or other proper a u t h o r i t y where t h i s i s r e q u i r e d by State law; "(3) That a l l a s s e t s and papers belonging to the t r u s t e s t a t e have been d e l i v e r e d by the bank to the p e r s o n or persons e n t i t l e d to receive them/ and n ( 4 ) That the bank has been discharged or o t h e r wise p r o p e r l y r e l i e v e d of i t s d u t i e s as fiduciary# I n exceptional c a s e s , the Federal Reserve Board may make a s p e c i a l examination or may request the Comptroller of the Currency to make a s p e c i a l examination of such n a t i o n a l bank i n order to o b t a i n the information above s e t f o r t h . ,f (c) C e r t i f i c a t e of Federal Reserve Board. I f upon r e c e i v i n g a copy of the r e p o r t of such examination of such n a t i o n a l bank the Federal Resenre Board s h a l l be s a t i s f i e d . t h a t such bank has been r e l i e v e d i n accordance with S t a t e law of a l l i t s d u t i e s as t r u s t e e , executor, a d m i n i s t r a t o r , r e g i s t r a r of stocks and bonds, guardian of e s t a t e s , a s s i g n e e , r e c e i v e r , committee of e s t a t e s of l u n a t i c s , or other f i d u c i a r y , under c o u r t , p r i v a t e or other appointments p r e v i o u s l y accepted by such bank under a permit granted by the Federal Reserve Board pursuant to the p r o v i s i o n s of Section l l ( k ) of the Federal Reserve Act, the Board may i n i t s d i s c r e t i o n i s s u e to such n a t i o n a l bank a c e r t i f i c a t e c e r t i f y i n g t h a t such bank i s no longer a u t h o r i z e d to e x e r c i s e the powers conferred upon i t by such permit of the Federal Reserve Board. Such bank thereupon ( l ) s h a l l no longer be s u b j e c t to the p r o v i s i o n s of Section 11 (k) of the Federal Reserve Act or the Regulations of the Federal Reserve Board made pursuant t h e r e t o , (2) s h a l l be e n t i t l e d to have returned to i t any s e c u r i t i e s which i t may have d e p o s i t e d with the S t a t e a u t h o r i t i e s or with the Federal Reserve Agent 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 , and (3) s h a l l not e x e r c i s e t h e r e a f t e r any of the powers granted by Section l l ( k ) of the Federal Reserve Act without f i r s t applying f o r and o b t a i n i n g a new permit from the Federal Reserve Board to e x e r c i s e such powers." By Order of the Federal Reserve Board. Very t r u l y yours, E. M. McClelland, Assistant Secretary. TO ALL F. R. AG-EITIS AITD GOVERNORS OF ALL F. R. BAMS.
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