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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 com- 
petition 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 enu- 
merated 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 pow- 
ers, but nothing in this Act shall be construed as author- 
izing 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 col- 
tection 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 act- 
ing 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,