CHAPTER 271

FORMERLY

HOUSE BILL NO. 441

AN ACT TO AMEND TITLE 5 AND TITLE 12 OF THE DELAWARE CODE RELATING TO HOLDING AND STORAGE OF SECURITIES BY FIDUCIARIES AND AGENTS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend §915, Part II, Chapter 9, Title 5 of the Delaware Code, by striking the said section in its entirety.

Section 2. Amend §3301, Part IV, Chapter 33, Title 12 of the Delaware Code, by striking the said section and substituting in lieu thereof the following:

§3301. Application of chapter; definitions

(a) The provisions of this Chapter shall govern fiduciaries, as well as agents in certain instances, now or hereafter acting under governing instruments.

(b) The term "fiduciary" shall mean trustees, personal representatives, guardians and custodians under the Uniform Gifts to Minors Act and other fiduciaries.

(c) The term "agents" shall mean custodians (other than those acting under the Uniform Gifts to Minors Act), escrow agents, managing agents and other persons holding, other than in the capacity of a fiduciary as above defined, property belonging to another person whether that other person is a fiduciary or a non-fiduciary.

(d) The term "governing instrument" shall mean a will, agreement, court order or other instrument creating or defining the duties and powers of a fiduciary or agent.

(e) The terms "legal investment" or "authorized investment" or words of similar import, as used in any governing instruments, shall mean any investment which is permitted by the terms of section 3302 of this title.

(f) The term "clearing corporation" shall refer to a "clearing corporation" as defined in section 8-102 of title 5A.

Section 3. Amend §3303, Part IV, Chapter 33, Title 12 of the Delaware Code, by striking the said section and substituting in lieu thereof the following:

§3303. Effect of provisions of instrument

Nothing contained in this chapter shall be construed as authorizing any departure from, or variation of, the express terms or limitations set forth in any governing instrument.

Section 4. Amend Part IV, Chapter 33, Title 12 of the Delaware Code, by adding thereto a new section, designated as §3309, which new section shall read as follows:

§3309. Identification of securities

(a) Except as otherwise provided by the terms of the governing instrument, all securities in a fiduciary estate, whether held by the fiduciary or an agent for the fiduciary, shall be held in such manner that the fiduciary's name and the fiduciary capacity in which the securities are held are fully disclosed, except as provided hereafter in this section or in section 3311 of this title.

(b) A bank or trust company acting as fiduciary or as agent for a fiduciary or non-fiduciary may hold securities in the name of its nominee without disclosing the capacity in which they are held, provided the records maintained with respect to those securities disclose the capacity in which they are held and provided there is no written objection from either a co-fiduciary or the person for whom it is acting as agent.

Section 5. Amend Part IV, Chapter 33, Title 12 of the Delaware Code, by adding thereto a new section, designated as §3310, which new section shall read as follows:

§3310. Storage of securities

(a) Except as otherwise provided by the terms of the governing instrument, all securities in a fiduciary estate, whether held by the fiduciary or an agent for the fiduciary, shall be stored separately from any other securities, except as provided hereafter in this section or in section 3311 of this title.

(b) A bank or trust company may store together securities of the same class of the same issuer held by it as fiduciary or as agent for a fiduciary or non-fiduciary (but not its own securities) and may combine the securities so stored together into one or more securities of the same class of the same issuer, provided the records maintained with respect to those securities disclose the capacity in which they are held and provided there is no written objection from either a co-fiduciary or the person for whom it is acting as agent.

Section 6. Amend Part IV, Chapter 33, Title 12 of the Delaware Code, by adding thereto a new section, designated as §3311, which new section shall read as follows:

§3311. Deposit of securities in clearing corporation

(a) Except as otherwise provided by the terms of the governing instrument, a bank or trust company may deposit in a clearing corporation securities held by it as fiduciary or as agent for a fiduciary or non-fiduciary provided the records maintained with respect to those securities by such bank or trust company disclose the capacity in which they are held and provided there is no written objection from either a co-fiduciary or the person for whom it is acting as agent.

(b) Securities deposited in a clearing corporation may be registered in the name of either the clearing corporation or its nominee without disclosing the capacity in which they are held.

(c) Securities deposited in a clearing corporation may be stored together with other securities of the same class of the same issuer also stored in the clearing corporation (but not the securities of the clearing corporation) and may be combined with such other securities into one or more securities of the same class of the same issuer.

Approved March 23, 1974.