TRUST DEPARTMENT
Ux DER the Federal Reserve Act it is possible for a
national bank to maintain and operate its own
trust department, exercising through this department
all of the fiduciary powers granted to state banks, trust
companies, etc., by the laws of the state in which the
national bank is located.
Permission to establish such a department is granted,
not by the Comptroller’s office, but by the Federal
Reserve Board. Proper forms for the applications are
furnished by the Board and the application, after it is
executed by the president or cashier of the bank, should
be mailed to the Chairman of the Board of Directors of
the Federal Reserve Bank in the particular district, who
will transmit it to Washington.
National banks which are permitted by the Federal
Reserve Board to function in fiduciary capacities are
required to establish a separate trust department under
the management of an officer or officers, and to abide
by certain other special rules laid down in the Federal
Reserve Act and by the Federal Reserve Board.
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