N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1645-3.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1645-3.2 - Custodian accounts

(a) Custodian accounts in a bank provide the best means of safekeeping for securities issued in bearer form. It will be found that short-term U.S. government obligations, such as treasury bills, notes and certificates of indebtedness, which are recommended for short term investments, are ordinarily issued in bearer form. Under most circumstances, the most satisfactory arrangement, when such securities are purchased, is to have the bank handling the acquisition of the securities act as custodian. Many banks will act as custodians for U.S. government securities without charge and local agencies should endeavor to make arrangements with such banks. The division will be glad to advise if difficulty is encountered in this respect. In any event, arrangements involving the payment of custodian fees should be submitted to the division for prior approval. Custodian fees, if any, are charged to the same account as safe deposit rentals (see § 1645-3.3, below).

(b) The resolution of the local agency authorizing the opening of a custodian account shall specify that the release of the securities, in whole or in part, from the custodian account shall be accomplished only upon the signature and counter signature of at least two authorized persons, who shall also be check signers.