General Laws of Massachusetts - Chapter 167G Trust Department - Section 8 Funds held in trust department awaiting investment or distribution

Section 8. Notwithstanding any provision of section four, funds held in the trust department of any bank awaiting investment or distribution may be deposited in its banking department if such bank shall first transfer to its trust department, to be held as security therefor, bonds, notes, bills and certificates of indebtedness of the United States, of this commonwealth, or of the states of Maine, New Hampshire, Vermont, Rhode Island, Connecticut or New York, or any of them, or any other securities in which the bank may legally invest, of an aggregate value of not less in amount than funds so deposited, and such bank shall at all times maintain the value of such security at such amount; provided, however, that such security shall not be required to the extent that the funds so deposited are insured by the Federal Deposit Insurance Corporation.

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Last modified: September 11, 2015