Delaware General Assembly


CHAPTER 161 - BANKS, SAVINGS SOCIETIES AND TRUST COMPANIES - PROVIDING FOR UNINVESTED FUNDS HELD BY A TRUST COMPANY

AN ACT TO AMEND CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, BY PROVIDING THAT .UNINVESTED FUNDS HELD BY A TRUST COMPANY, ACTING IN A FIDUCIARY CAPACITY SHALL BE A PREFERRED CLAIM OVER ALL UNSECURED CLAIMS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out and repealing all of 2311. Sec. 54. and inserting in lieu thereof a new Section, to be styled 2311. Sec. 54. as follows:

2311. Sec. 54. Uninvested Funds Held on Deposit by Bank or Trust Company Acting in Fiduciary Capacity Shall Be a Preferred Claim:--Whenever any bank or trust company shall hold on deposit uninvested funds as a part of its deposit liabilities for the account of an estate for which it is acting as executor, administrator, guardian, trustee or in any other fiduciary capacity the liability of such institution to the estate entitled to such uninvested funds shall be at all times a preferred claim superior to all unsecured claims of other creditors, including depositors of such institution, provided that this act shall not be construed to subordinate the security of any secured creditor of any such institution to the preference hereby accorded to the deposits of any such estate.

Approved March 29, 1945.