§ 26-45.2. Placing certain trust assets in designated financial institutions; waiver or reduction of bond of f...
(1) Whenever it shall be the judgment of any court having jurisdiction of any estate in process of administration by any guardian, conservator, curator, executor, administrator, trustee, receiver, or other officer, because the size of the bond required of such officer shall seem burdensome or for other cause, the court may order such portion or all of the personal assets of the estate, as it shall deem proper, to be placed with a designated bank, trust company or savings institution, insured by the Federal Deposit Insurance Corporation or other federal insurance agency and doing business in this Commonwealth, consideration being given to any bank, trust company or savings institution, proposed by the officer. When the original assets are accordingly placed with a designated financial institution, such financial institution shall issue in the name of the estate and file with the court a receipt or receipts therefor and shall give the officer a duplicate copy thereof. Such receipt or receipts shall acknowledge:
(a) The original assets received by the financial institution, or the duly collected proceeds therefrom, and all interest, dividends, principal and other indebtedness subsequently collected by the financial institution on account thereof, are to be held by the financial institution in safekeeping, subject to such instructions of the officer as are authorized by orders of the court directed to the financial institution; and
(b) Accountings therefor shall be made to the officer at reasonably frequent intervals agreeable to the officer. After the receipt or receipts of the financial institution for the original assets placed with such financial institution have been filed with the court, the court thereupon shall, by an order, waive the bond to be given or previously given by such officer or reduce it so that it shall apply only to the estate remaining in the hands of such officer, whichever the court shall deem best for the estate.
(2) Whenever the court has ordered any assets of an estate to be placed with a financial institution designated as provided herein, any person or corporation having possession or control of any of such assets, or owing interest, dividends, principal or other indebtedness on account thereof, shall, on the due dates thereof, upon the demand of the financial institution whether the officer has duly qualified or not, pay and deliver such assets, interest, dividends, principal and other indebtedness to the financial institution. The receipt and acceptance thereof by the financial institution shall relieve the person or corporation from all further responsibility.
(3) Any bank, trust company or savings institution as above described which may be designated by the court under this section, shall be at liberty to accept or reject such designation in any particular instance. The financial institution shall evidence its acceptance or rejection by filing the same with the court or the clerk of the court making such designation within fifteen days after actual knowledge of such designation shall have come to the attention of that financial institution. In the event of acceptance such bank, trust company or savings institution shall be allowed as a proper charge against the assets placed with such financial institution, such reasonable amount for its services and expenses as the court making such designation may by its order allow and provide.
(1972, c. 321; 1990, c. 3; 1997, c. 801.)
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