Regulatory Alerts2004-09-30
Actions Required, Permitted or Prohibited in Fiduciary Capacity
The Pennsylvania Department of Banking issued this letter to inform state-chartered trust institutions that Section 201(f) of the Banking Code permits them to engage in fiduciary activities to the same extent as national banks. Consequently, the Department eliminated the requirement for these institutions to obtain prior approval to pledge obligations as collateral for trust funds, provided the collateral meets national bank standards. This regulatory change aligns state fiduciary rules with federal standards and reduces the paperwork burden for Pennsylvania financial institutions.
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