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FEDERAL RESERVE ACT SEc. 1

any other fiduciary capacity in which State banks, trust
companies, or other corporations which come into competition
 with national banks are permitted to act under
the laws of the State in which the national bank is located.
Whenever the laws of such State authorize or permit
the exercise of any or all of the foregoing powers by State
banks, trust companies, or other corporations which
compete with national banks, the granting to and the
exercise of such powers by national banks shall not be
deemed to be in contravention of State or local law
within the meaning of this Act.
National banks exercising any or all of the powers enumerated
 in this subsection shall segregate all assets held
in any fiduciary capacity from the general assets of the
bank and shall keep a separate set of books and records
showing in proper detail all transactions engaged in under
authority of this subsection. Such books and records
shall be open to inspection by the State authorities to the
same extent as the books and records of corporations
organized under State law which exercise fiduciary powers,
 but nothing in this Act shall be construed as authorizing
 the State authorities to examine the books, records,
and assets of the national bank which are not held in
trust under authority of this subsection.
No national bank shall receive in its trust department
deposits of current funds subject to check or the deposit
of checks, drafts, bills of exchange, or other items for coltection
 or exchange purposes. Funds deposited or held
in trust by the bank awaiting investment shall be carried
in a separate account and shall not be used by the bank
in the conduct of its business unless it shall first set aside
in the trust department United States bonds or other
securities approved by the Federal Reserve Board.
In the event of the failure of such bank the owners of
the funds held in trust for investment shall have a lien
on the bonds or other securities so set apart in addition to
their claim against the estate of the bank.
Whenever the laws of a State require corporations acting
 in a fiduciary capacity, to deposit securities with the
State authorities for the protection of private or court
trusts, national banks so acting shall be required to make
similar deposits and securities so deposited shall be held
for the protection of private or court trusts, as provided
by the State law,