2006 New York Code - Powers, Duties And Limitations

 
  § 11-1.9 Power  of  Fiduciary  or  Custodian  to Deposit Securities in a
             Central Depository
    (a) Notwithstanding any other provision  of  law,  any  fiduciary  (as
  defined  in section 1-2.7) holding securities in its fiduciary capacity,
  any bank, trust company  or  private  banker  holding  securities  as  a
  custodian  or  managing  agent,  and  any bank, trust company or private
  banker holding securities as  custodian  for  a  fiduciary  pursuant  to
  section  11-1.1  (b)(9),  is  authorized to deposit or arrange through a
  subcustodian or otherwise for  the  deposit  of  such  securities  in  a
  clearing  corporation  (as  defined  in  article  eight  of  the Uniform
  Commercial Code).  When such securities are so  deposited,  certificates
  representing  securities  of  the  same  class of the same issuer may be
  merged and held in bulk in the name of  the  nominee  of  such  clearing
  corporation  with  any  other such securities deposited in such clearing
  corporation  by  any  person  regardless  of  the  ownership   of   such
  securities,  and  certificates  of small denomination may be merged into
  one or more certificates of larger denomination.   The records  of  such
  fiduciary  and the records of such bank, trust company or private banker
  acting as custodian, as managing agent or as custodian for  a  fiduciary
  shall  at  all  times  show  the name of the party for whose account the
  securities are so deposited.  Ownership of, and other interests in, such
  securities may be transferred by bookkeeping entry on the books of  such
  clearing   corporation   without   physical   delivery  of  certificates
  representing such securities.  A bank, trust company or  private  banker
  so  depositing  securities  pursuant to this section shall be subject to
  such  rules  and  regulations  as,  in  the  case  of  state   chartered
  institutions,  the  state  banking  board  and,  in the case of national
  banking associations, the comptroller of the currency may from  time  to
  time issue.  A bank, trust company or private banker acting as custodian
  for a fiduciary shall, on demand by the fiduciary, certify in writing to
  the fiduciary the securities so deposited by such bank, trust company or
  private  banker  in  such  clearing  corporation for the account of such
  fiduciary.  A fiduciary shall, on demand by  any  party  to  a  judicial
  proceeding  for  the settlement of such fiduciary's account or on demand
  by the attorney for such party, certify in writing  to  such  party  the
  securities  deposited by such fiduciary in such clearing corporation for
  its account as such fiduciary.
    (b)  This section shall apply to any fiduciary holding  securities  in
  its fiduciary capacity, and to any bank, trust company or private banker
  holding  securities  as  a  custodian, managing agent or custodian for a
  fiduciary,  acting  on  the  effective  date  of  this  section  or  who
  thereafter  may  act regardless of the date of the agreement, instrument
  or court order by which it is appointed and regardless of whether or not
  such fiduciary, custodian, managing agent or custodian for  a  fiduciary
  owns capital stock of such clearing corporation.