N.Y. Comp. Codes R. & Regs. tit. 3 § 22.19

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

Section 22.19 - Restrictions on ownership of participations by trustee

A trust company administering a common trust fund shall not:

(a) have any interest in such fund other than in its fiduciary capacity; or

(b) make any loans on the security of a participation in such fund.

If because of a creditor relationship or otherwise the trust company acquires an interest in a participation in such fund the participation shall be withdrawn on the first date on which such withdrawal can be effected. However, in no case shall an unsecured advance to an account holding a participation until the time of the next withdrawal be deemed to constitute the acquisition of an interest by the trust company.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 22.19