Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part III - Savings Association Bureau
Chapter 31a - TRUST POWERS
Section 31a.6 - Funds awaiting investment or distribution
Universal Citation: 10 PA Code ยง 31a.6
Current through Register Vol. 54, No. 12, March 23, 2024
(a) General. Funds held in a fiduciary capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the account.
(b) Use by association in regular business.
(1) Funds held in trust by
an association, including managing agency accounts, awaiting investment or
distribution may, unless prohibited by the instrument creating the trust, be
deposited in another department of the association if the association first
sets aside under control of the trust department as collateral security one of
the following:
(i) Direct obligations of the
United States, the Commonwealth or other obligations fully guaranteed by the
United States as to principal and interest.
(ii) Other readily marketable securities
approved by the Department.
(2) Collateral securities or securities
substituted as collateral shall at all times be at least equal in market value
to the amount of trust funds so deposited, but such security shall not be
required to the extent that the funds deposited are insured by the Federal
Savings and Loan Insurance Corporation or the Pennsylvania Savings Association
Insurance Corporation.
(3) Any
funds held by an association as fiduciary awaiting investment or distribution
and deposited in another department of the association shall be made
productive.
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