Regulatory Alerts1994-05-31
Exemption under Section 106 of the Banking Code
The Pennsylvania Department of Banking determined that a proposed non-profit custodian corporation acts as a fiduciary under Section 106 of the Banking Code because it manages client funds for certificates of deposit. The Department declined to grant an exemption for this fiduciary role because the applicant failed to provide evidence of compliance with the Nonprofit Corporation Law, specifically an IRS ruling confirming non-profit tax-exempt status. Consequently, the custodian remains subject to Department regulation until sufficient proof of its non-profit status is submitted.
Share